Mcx Crude Commodity market Trading getting weaker on Wednesday and severely butchered on Thursday as speculation increased that OPEC may maintain status quo on its oil supply position in its forthcoming meeting on 27 Nov. Brent oil fell around 4.5percentage in a single session to $77 per barrel whereas WTI slipped near 4percentage to $74 per barrel. Major traders and investors are getting ready for a case wherein no proper agreement would be reached amongst OPEC members with some of them already taking steps to main market share even at a cost of decline in prices lately. Nevertheless, volatility continued on the last day wherein positive US Retail data and oversold nature of the commodity pushed oil higher by around 1.5percentage both at WTI and Brent and notably we saw gains coming in almost all non-agri commodities. In fresh cues, voices are rising that lower oil prices are gradually cutting down intro fiscal budgets for a number of economies in the OPEC group and thus fuelling speculation that probably we would see some cut coming in the meeting. Earlier, Libya based OPEC Governor SamirKamal said the group must cut daily output by 500,000 BPD as the market remains oversupplied by about 1 MBPD. We have seen Libya and other fellow OPEC states like Veneela and Ecuador have called for action to stabilize crude prices. While still broader view continues to be down, we feel it is better to mark only momentary nets in the commodity today as markets lack proper clarity.
Global Market View: Let us begin the week with fresh ideas and trade smart. The Asian markets are trading negative this morning possibly taken cues from mixed US close on last Friday. Early morning update: Japan GDP number shrunk from the expectation while the same is better than prior number. This is the reason why possibly Japanese Yen is trading strong against its major counter parts likewise, pound and the euro has also appreciated. Therefore, the USD index has declined this morning and trading at 87.27. The positive effects are felt on the commodities especially the US dollar denominated assets. We shall discuss on each sector while we have a couple of data today which are likely to have influence on the market.
Economic data: Euro-zone trade balance @ 3:30 PM IST, from the US we have empire manufacturing at 7 PM IST, industrial production @ 7:45 PM and the capacity utilization number.
Mcx Natural gas Commodity Trading has huge loss in the commodity last week as expectations seeped in that cooler forecasts would not be as severe as anticipated earlier. Also later Friday evening, EIA weekly storage report showed weekly stocks addition to the tune of 40 BCF against expectations of 35BCF and last 5 years average number near 16 BCF. Prices are trading with a big gap of around 3percentage during early Asian trade and likely that similar effect would be reflected in Indian MCX opening. However, forecasts remain for largely stabilized temperatures in much of the US and thus down support any major positive move further. We have a cautious approach in the NG today. Natural gas was a huge under performer last week with the commodity taking a toll out of subdued cold weather forecast in much of US over next two weeks. NG for active Dec contract at NYMEX slipped 8.9percentage to $4.02 per MMBTU marking its worst weekly losses since Feb this year. NG at MCX exchange for Nov expiry fell at a similar rate of 9.3percentage to Rs 249 per MMBTU.
Sell Zinc Mcx Nov below 139.80 SL 140.80 TP 138.50
Sell Crude Mcx Nov below 4730 SL 4780 TP 4650