MCX Crude Commodity Market Trading as per the DoE, crude stocks increased for the fourth week due to persistently higher production in the US and the same was completely opposite of the earlier reports by the API which showed decline in Crude stocks in the US. US crude stocks gained by 2.06 million barrels for the week ended Oct 24, whereas negatively stocks at Cushing, the delivery point for WTI increased by 776,000 barrels, to its highest since June this year. In other cues, gasoline inventories fell by 1.24 million barrels, its lowest level since November 2012 while distillate supplies unexpectedly tumbled 5.3 million barrels, probably as refiners started rotating their utilization towards higher distillate supplies ahead of winter. Overall, we could say the data was mixed to moderately positive, however continuously rising supplies in the US casts a doubt on how far the commodity might gain after recording around 3% up move in last three trading sessions. Also we feel, rebound in the prices post the weekly inventory data released was cut back by appreciation of USD after the release of the FED meet outcome. This morning oil is seen trading at $81.64 down by 0.30%. We will have to be again cautious today. At this moment again turning bullish does not looks so much promising but we refrain from selling the counter on today. We have loads of data to be released today and the important one is US GDP. Any improvement in the data might support oil prices to trade again higher. We hold a small buying view on oil today with strict stop loss.
Global Market View: Finally the story ends with Zero dollar monthly bond buying by the Federal Reserve in the US while it stressed on improvements taking place in the labor market. Aftermath: The dollar shot up against most major currencies, Commodities especially gold fell down to $1208 and this morning it’s at $1213.50. Rest of the commodities was very much impulsive.We believe the impact would be continued to feel today as well while more volatility could be noticed. We will have to watch how equity markets, currencies and commodities perform today. At the local market in India, we are going to see a good gap up/down in most of the non-agro commodities prices. There are a few economic expected today while the US GDP number to be watched critically
MCX Natural Gas Markets expected probable lower additions in the NG stocks which pushed commodity higher for last two days whereas fresh cues came from the weather side added gains. The midday update of the government’s Global Forecast System showed a blast of cold air in the East later this week which will extend through next week, according to Jim Southard, meteorologist with Frontier Weather Inc and as reported by Bloomberg. On the inventory side, EIA might show stocks addition by 84 BCF as against 94 BCF last week. While we agree this is still higher than broad trend in last five years, modest buying in the commodity is acceptable after a big slide in last few weeks with weather related news too supporting. Intraday view remains buy though advice traders to refrain from any major carry forward positions as volatility may rise in coming sessions.
Sell Silver Dec Mcx below 38360 SL 38650 Tgt 37800
Buy Lead Oct Mcx above 124 SL 123.15 Tgt 125