Commodity Mantra

  Global Update
April 07, 2011

Morning Session
Comex Gold (June) Comex CMP: US$ 1,456.4/oz

Fundamental View: Gold futures set another

new record high, reaching $1,463.70 per ounce
this morning. Rally was fueled by broad-based
gains in the commodities complex and a further
slide in the US dollar against the world’s other
leading currencies.

Gold futures settled at a fresh record high and

silver posted its highest price in more than three
decades as investors continued to fret about
global inflationary pressures from high oil prices.

The precious yellow metal got a fresh influx of

investment buying based upon heightened
inflationary expectations, safe-haven demand
and a weakening US dollar index.

Technical View: Indicators continue to show

neutral tendencies with RSI in the neutral zone
and MACD above the zero line indicating Gold
bullishness. High Low Close %Chg OI

Recommendation: While supports at 1,452-53 MCX June (Rs/10gm) 21,234 21,123 21,166 0.0 10,635
holds look for a rise towards 1,467-1,468 levels
now. NCDEX June
(Rs/10gm) 21,601 20,000 21,171 0.0 41

MCX Gold (June) COMEX June

(US$/oz) 1,463 1,456 1,458 (0.1) 359,408

Recommendation: While supports at

21,100/21,085 holds look for a rise towards MCX CMP: 21,183/10gm  
21,300/21,320 levels now.
Global Update…
 

Comex Silver (May) Comex CMP: US$39.40/oz

Fundamental View: Continuing its record-

breaking streak for the third straight session,
silver surged 900 rupees, to hit yet another all-
time peak of 58,400 rupees per kilo at Delhi's
bullion market, on Wednesday, on sustained
heavy buying by stockiest, driven by a firm
global trend

Silver continued its winning streak for the third

straight session and surged Rs. 900 to hit yet
another high of Rs. 58,400 per kg on
Wednesday on sustained heavy buying by
stockiest, driven by a firm global trend.

Trading sentiments turned bullish in overseas

markets, as silver rose to a 31-year high as the
sovereign-debt crisis in Europe deepened, after
Moody’s Investors Service cut Portugal’s credit
rating and higher grain and oil prices worsened
the inflation outlook. Silver
High Low Close %Chg OI

Technical View: Indicators continue to show

neutral tendencies with RSI in the neutral zone MCX May (Rs/Kg) 58,140 57,513 57,708 0.3 17,365
and MACD above the zero line indicating
bullishness.
NCDEX May (Rs/Kg) 58,098 40,470 57,723 4.9 4050

Recommendation: Buy dips to 39.15, SL COMEX May

38.90, TGT 39.65. (US$/oz) 39.6 39.3 39.4 0.1 73,132

MCX Silver (May) MCX CMP: Rs 57,813/kg  

Recommendation: Buy dips to 57,310, SL
56,940, TGT 57,920.

 Commodity Mantra 2
Global Update…
 

Comex Copper (April) Comex CMP: US$4.3505/lb

Fundamental View: Copper prices opened in

green territory with LME and Shanghai prices
jumped almost one percent ignoring the 25 bps
hike in interest rates when china market re
opened after a two day holiday while other
metals traded choppy

Copper ended sharply higher on Wednesday,

posting its biggest one-day gain in two weeks as
currency-related buying and perceptions of
healthier Chinese purchases fed the rally.

Copper prices now stand within 6% of their mid-

February records at $10,190 per ton in London
and $4.6575 per lb in New York, as investors bet
that China's economy, which expanded by 10%
in 2010, will need greater amounts of raw
materials to satisfy that rate of growth.
Copper
High Low Close %Chg OI
Technical View: Indicators continue to show
neutral tendencies with RSI in the neutral zone
and MACD above the zero line indicating MCX April (Rs/Kg) 428 419 428 2.2 22,052

bullishness.
LME (US$/ton) 9,615 9,573 9,595 (0.3) 0
Recommendation: Dips to 431-430 to be
bought, SL 427, TGT 440.
COMEX April (US$/lb) 436 424 436 2.4 295

MCX Copper (April)

MCX CMP: Rs 427.60/1kg  
Recommendation: Dips to 424/423 to be
bought, SL 420, TGT 431.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 Commodity Mantra 3
Global Update…
 

Nymex Crude (May) Nymex CMP: US$108.40/bbl

Fundamental View: US crude oil edged up as

the dollar's weakness ahead of an expected euro
zone interest rate hike and continuing conflict
and unrest in Libya and the Middle East
supported prices ahead of government oil
inventory data.

A weak dollar can boost dollar-denominated oil

prices as it becomes less expensive for users of
stronger currencies and attracts investors to the
oil market seeking better returns.

Oil futures gave back gains after a government

report showed US oil stockpiles rose for a fifth
straight week. Trading volumes for Brent, whose
price has steamed ahead of the Nymex contract
this year, outpaced volumes for Nymex's West
Texas Intermediate crude for the second straight
session.
Crude
Technical View: Indicators continue to show
High Low Close %Chg OI
neutral tendencies with RSI in the neutral zone
and MACD above the zero line indicating
bullishness. MCX April (Rs/bbl) 4,827 4,778 4,794 0.0 16,314

Recommendation: Buy dips to 107.95, SL NCDEX April (Rs/bbl) 4,823 4,780 4,795 0.0 66,800
107.30, TGT 109.20
NYMEX May
(US$/bbl) 108.7 108.4 108.4 (0.4) 315,901
MCX Crude (April)

Recommendation:  Buy dips to 4,770, SL MCX CMP: Rs 4,808/bbl

4,735, TGT 4,845.

44. 

Note:
Ideas given under the ‘Commodities’ section are for intraday purpose or up to a period of three trading sessions. Recommendations under thi

 Commodity Mantra 4
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