Import Price Index and Commodity Market Tips

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Import Price Index and Commodity Market Tips
Mcx Crude oil commodity market trading recorded
another day of huge drop as Brent and the WTI,
both tumbled while both of them officially moving
into bear territory as compared to their 2014
highs. As of yesterdays update, OPEC basket for
crude oil slipped to near 88, the agencys
officials notified putting further pressure on
the global oil markets which have already been
flooded with easing supplies and lower demand.
WTI touched a low near 84 per barrel yesterday
though managed good pullback in last few hours
and closed down. The IMFs earlier
statement which showed, the world economy
would expand at a slower pace of
3.8percentage in 2015 as compared to
earlier forecast of a growth near
4percentage in July weight markets sentiment
with continued weaker EU and Chinese data
variables fueling further concerns. Equities
across the globe fell last day also adding to the
downside pressure on the oil prices globally. As
of today morning trade, we are seeing fresh
pressure escalating over both WTI and Brent which
are down by 1.8percentage and 1.75percentage
respectively and that should push our markets
fairly lower by around 1percentage at the time of
opening (adjusting with Rupee and yesterdays
closing). Though direction for oil stays down,
daily RSI has moved to near 16 for the WTI, so
there should be a pullback sooner than later.
We recommend fresh sell only on pullback
or better that traders can take bets in
other non-agri commodities today rather than
target crude oil. Global Market View as of
Friday morning, all Asian markets are trading on
a negative note tracking the huge and surprising
fall in US equity markets overnight. SP 500
closed at 1928.00 down by more than 2percentage
as markets feel uncertain about the Global
growth prospects, and this in turn could
be having a negative effect on the companies or
corporate earnings. Dollar index has recouped
some of the losses from the last two days wherein
it touched a low of 85.00 while is currently
trading at 85.50. Most of the global currencies
earlier appreciated with respect to the dollar
with majors being Euro and Pound which advanced
to 1.2700 and 1.6122 yesterday, though are
marginally down from those highs. There is no
major economic data to be released in
todays session so probably movement might
remain constrained in most non-agri commodities
locally and globally. We maintain bearish view
in the commodity on account of continued weather
related cues in the US and largely increasing
supplies in the country. As per EIA report,
stocks increased by 105 billion cubic feet for
the week ending October 3, compared with an
expected increase of around 108 BCF. However
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still its was way higher than 5 year average
injection during this time of the year around 84
BCF, and inflicts price direction. As said
yesterday, MDA said temperatures in the East will
range from seasonal to about 1 degree below
normal from Oct 18 through Oct 22 against earlier
forecast for a shot of cold air sweeping the
Midwest during the period. We hold selling bias
in the commodity for today. Commodity Trading
Tips Sel l Silver Mcx Dec below 38560 SL 38860
Tgt 37950 Sell Natural Gas Mcx Oct below 233 SL
236 Tgt 227