Empire Manufacturing and Commodity Intraday Tips

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Empire Manufacturing and Commodity Intraday Tips
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 _at_ 330 PM IST, from the
US we have empire manufacturing at 7 PM IST,
industrial production _at_ 745 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
2
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 underperformer 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. Commodity Intraday Trading Tips Sell Zinc
Mcx Nov below 139.80 SL 140.80 TP 138.50 Sell
Crude Mcx Nov below 4730 SL 4780 TP 4650