Crude oil prices for most active November expiry contract fell sharply in yesterday’s session as markets took negativity out of the weekly crude inventory report from the API. At the time of closing, NYMEX WTI stood at $100.65, down by 1.6% for the day. During the session, oil prices touched a low of $100.2 per barrel, its lowest levels since July this year and depicting the broader weakness in the commodity. At the local markets in India, MCX oil prices plunged 3% to finish at Rs 6182 per barrel mark with additional losses coming in domestically due to the expectations of continued appreciation in the Rupee.
While there were no major oil related developments yesterday, the Wednesday’s API report put pressure on global oil prices i.e. both on the Brent and the WTI. As we had also talked earlier, private funded American Petroleum Institute said, weekly crude stocks jumped almost 6 million barrels for the week ended 11th, nearly four times the market’s expectations. Though the product related gasoline and distillate stocks saw a moderate decline, it couldn’t help the markets to take any kind of positivity out of the data.
Amongst other major global market cues, we had seen enormous movement in entire financial asset classes yesterday wherein especially the US dollar index plunged below 80 while Euro currency stepped up to $1.3650 mark. Likewise, developed and developing equity markets traded on a positive note. We believe market have reacted sharply on the last trading session and today being the weekend and no major economic data from the Europe or the US, we might witness a range bound movement.
Early morning today, Ex-Japan Asian equities are trading positive and are likely to be supported by better Chinese GDP and industrial production data. We feel broader markets are likely to take support out of the Chinese cues though especially for oil major trend remains on the weaker side. We recommend selling crude oil on pull-back for the day.
TODAY STOCK MARKET TIPS
BUY CRUDE OIL MCX OCT ABOVE 6163 SL 6142 TGT 6180
SELL NATURAL GAS MCX OCT BELOW 229 SL 231 TGT 226
ECONOMIC INDICATORS:
| DATE | TIME | Region | Indicator | Period | Survey | Prior |
| 18.10.2013 | 07:30 | CH | GDP SAQoQ | 3Q | 2.10% | 1.70% |
| 18.10.2013 | 07:30 | CH | Industrial Production YoY | Sep | 10.20% | 10.40% |
| 18.10.2013 | 07:30 | CH | Retail Sales YoY | Sep | 13.40% | 13.40% |
| 18.10.2013 | 10/26 | US | Industrial Production MoM | Sep | 0.40% | 0.40% |
| 18.10.2013 | 10/26 | US | Capacity Utilization | Sep | 78.10% | 77.80% |
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