Business Inventories and Commodity Intraday Trading

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Business Inventories and Commodity Intraday
Trading
Crude oil Commodity Intraday trading as per the
latest developments, Asian equity markets are
trading weaker post the mixed to weaker
Chinese lending data which surged more than
80percentage on a Mom comparison however still
stood marginally lower than expectations. Already
we have seen Chinese PPI and CPI number yesterday
wherein both readings disappointed heavily and
also one of the major reasons behind pressure on
industrial commodities lately including
oil. Looking at the oil prices, yesterday we saw
US oil jumping smartly from lows which was
accompanied with better volumes which increase by
near 27percentage at NYMEX however OI figures are
unavailable to us right now. While we check
the same numbers for MCX crude, data
suggests Vol increased by 13percentage though
OI fell by a similar rate and thus depicting
towards a probably short-covering post the huge
fall in prices in last couple of days.
With Brent oil continuing to trade on a
weaker note, economic data from China and
EU remaining subdued, we feel broad
pressure on oil prices would
continue. Global Market View We have been
seeing an incredible strength in the Dollar
Index, if it ends up this week (which in all
probability it will) this would be its9th
consecutive up week to trade higher. The USD at
present is trading at 84.35 Euro tumbled
to 1.2918,Japanese yen the worst hit at
107.40, pound sterling managing at
1.6234.Moving onto commodities straight, we
saw carnage in the market. The entire assets
under commodities declined and looks like the
same scenario may continue today. Economic data
China released its money supply number which has
declined a tad especially the M1 and M2money.
This indicates poor circulation of funds in the
economy, prompting soon a stimulus
package. Economic data today Japan Industrial
production Germany Wholesale price index
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Euro-zone Industrial production and the
employment data India CPI, likely to slow down
a bit and the IIP number. US retail sales,
import price index and the business
inventories. Natural gas commodity intraday
trading yesterday amongst major data, the
EIA data showed N for stocks for week
ended Sept 5 increased higher than expected
by 92 BCF as against last weeks and
expected reading. Also inventories continue to
increase higher than last five year average data
wherein 5 Yr avg for this time of the year stands
at just 60 BCF further inflicting prices. We
re-iterate our stand that the commodity continues
in a bearish phase owing to the fact that higher
production in the US and lower demand pushes it
lower. Traders note that Rupee might narrow down
the short-side potential for the
commodity. Commodity Intraday Trading
Tips Sell Crude oil mcx Sep below 5680 sl 5715
Tgt 5570 Sell natural gas mcx Sep below 237 SL
240 Tgt 232