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Date Created: 12/21/15
Weekly Commodity News Commodity Weekly Report for 01/April./2013 – 06/April./2013 FM announces to levy 0.01% CTT on non-agro commodity trades Finance minister P Chidambaram announced to levy a commodity transaction tax (CTT) of 0.01 per cent on all non-agro commodity trades such as gold, silver, non-ferrous metals and crude oil. CTT will be similar to the securities transaction tax (STT), levied on the purchase and sale of equities in the stock market. So far, commodity transactions have been exempted from any levy. However, agricultural commodities will be exempted from CTT. Experts say that levying CTT will not only add to revenue but also create a level playing field between the stock investor and the commodity exchange investor. As per an estimate, the CTT will add to a revenue of Rs 5000 crore to the exchequer besides bringing in more transparency in the commodity trade. On the other hand, commodity exchanges termed this duty to be counterproductive. “It will lower trade volumes and not contribute much to the government exchequer,” said a representative of a commodity exchange. The government however cut STT by 20% to 0.1 percent from 0.125 percent on cash delivery transactions. MCX Crude Oil trades positive on Europe, US data outlook. Crude Oil prices at India’s Multi Commodities Exchange (MCX) are witnessing a bullish phenomenon. The commodity is now trading around 5250-5277 Rs/bbl levels. US weekly Crude storage and Euro zone data’s are likely to be announced today, may impact international markets. Weak dollar Index may reflect dollar denominated commodities. In Nymex markets, WTI Crude Oil was in neutral trend. It closed at 97.10 $/ bbl levels. In Indian markets, all India strike by the labour unions may impact the markets in the later session. Holiday for spot markets and industries may reflect futures trading. On charts, Crude oil is heading to higher levels with bullish indicators. In the evening session, outlook on Euro zone and US data release may reflect Crude oil prices. All India strike may impact future trading in India. We expect MCX Crude to trade on positive bias. MCX Copper turns red on weak dollar index. Copper prices at India’s Multi Commodities Exchange (MCX) witnessed a bearish phenomenon. The March Contract is now trading around 428.50-431.20 Rs/kg levels. Decline in LME markets and weak dollar index has impacted prices. U.S and Euro zone manufacturing Purchasing Manufacturing Index (PMI) is likely to be announced in later session may pressurize the base metal pack. In LME markets, Copper declined to $7828 levels as it may reflect MCX metal prices. Slow demand from Chinese manufacturing industries has impacted Base metal prices. China’s latest property market curbs have stirred heated discussion, with experts close to policymakers saying China will try to control the side effects of the measures. In the evening session, outlook on Euro zone and U.S manufacturing PMI may reflect Copper prices. Active demand from Chinese markets may witness recovery on Copper in later session. But weak Dollar index may pressurize the commodity prices. We expect MCX Copper to trade on bearish note. MCX GOLD Technical Trend MCX GOLD last week showed downward movement and found support of lower band of triangle pattern, if it able to break its strong support i.e. 29100 then next support level is seen around 28750. On higher side 29650 will act as important resistance for it only above this positive movement will be expected. STRATEGY Better strategy in MCX GOLD is to sell below 29100 for the targets of 28650 with stop loss of 29650. MCX SILVER Technical Trend MCX SILVER last week showed downward movements and found support near to lower band of downward channel pattern on daily chart. Now, if these bearish movement continuous then 52500 will act as support for it below this it may drag towards 51200. On other hand if it takes reversal from current levels then it may face resistance 54500. STRATEGY Better strategy in MCX SILVER at this point of time is to sell below 52500 for the target of 51500, with stop loss of 53650. MCX CRUDEOIL Technical Trend Crude oil last week showed upward movements found resistance of trend line and closed below this. Now, if it able to break resistance level of 5520 then breakout of trend line is expected and may find next resistence near 5625. On other hand if it take reversal from current level then near term support is seen around 5300. STRATEGY Better strategy in MCX CRUDEOIL is to buy above 5460 for the target of 5550-5600 with stop loss of 5299. MCX COPPER Technical Trend MCX Copper last week showed downward trend broke psychological level of 400 but closed above this, found strong support of trend line on weekly charts. If it takes some correction then 420 is act as resistance zone for it. On lower side if it breaks support of 395 then next support is seen around 375. STRATEGY Better strategy in MCX COPPER will be sell below 405.50, with stop loss of 413 for the target of 396.50. For more info click here Stock Tips Commodity Tips Mcx Tips
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