Mcx Crude commodity market Trading need not to talk much as broader problems over global economic concern and supply side easing continuing in the middle-east is reflecting on the black liquid which is down over a percent both at the Brent and the WTI. As per the developments on Friday evening, Iran had followed Saudi Arabia wherein it is planning to offer discount on Iranian Light by 82 cents a barrel as compared to the average of Oman and Dubai further casting a negative shadow over the commodity. As prices dwindle, discounts and cuts in OSP’s is just another meter which suggests that market is not in a good condition and has a chance to move into further un chartered territories in medium-term. Traders and Inventors should be watching how actually other members of the group like Kuwait and Iraq act over the same, as officially they are supposed to release their prices estimates in the coming week.
In other developments last week, crude inventories for week ended October 3rd jumped by 5 million barrels, higher than markets forecasts whereas gasoline and distillate stocks too rose, with fall in refinery utilization rate and lower demand putting pressure on product stocks as well. Gasoline inventory advanced 1.18 million barrels while distillate stocks increased 439,000 barrels further affecting prices negatively. While we have a weekly sell recommendation, though feel that commodity remains highly oversold and thus we recommend only momentary trades in the oil today with negative bias
Global Market View on Monday morning, all Asian equity indices are trading on a negative note tracking the continued fall of the US markets. S&P 500 closed at 1906.13 down by more than 1 percent last Friday as markets continue to reel under the uncertainty about the Global growth prospects. Dollar index has shown some weakness in today’s trade against the Japanese Yen which has been appreciating as investors return to respect its haven status in times of uncertainty. US dollar index is currently trading at 85.45. Into major cues today morning, Chinese trade data surprised on the positive side supporting some gains in the base metals segment, notwithstanding the weaker equities whereas crude oil too slumped heavily though Bullion gained.
Economic Data: No major economic data from US and EU today, India CPI and Export/Import data due.
We had maintained overall bearish bias in the commodity lately where moderately better stocks report too could not support the commodity from falling in past week. As per news report NaturalGas Weather.com said cool blasts coupled with showers and thunderstorms will push temperatures across the central US and Northeast this weekend to below average however nothing too excessive. At the same time, Southern and Western parts of the country will remain very warm thus keeping overall demand for the commodity down. We continue with our negative bias in the commodity for today.
Sell Silver mcx Dec below 39000 SL 39350 TP 38600
Sell Nickel mcx Oct below 1013 SL 1025 TP 993