Check ojut the trading strategies for key commodities.


The market sentiment was largely subdued and morose in spite of Greek bailout, as markets sighted relentless debts burden still an encumbrance to resurgence. The rally seen in the spot gold yesterday evaporated on persistent debt issues and rather incomprehensive Chinese PMI manufacturing data, which in spite of an augment remained in contraction territory fuelling fears that World’s second largest economy could remain on sidelines in near term.

The base metal complex in LME pared its initial gains on worries over China in wake of flagging raw material demand. LME Nickel was down more than a percent and Copper was seen losing 0.5 percent.

Earlier, the Euro zone February Manufacturing index declined to 49.7 further reiterating underlying weakness in the 12-year old Euro bloc economy. The Indian rupee continued to consolidate in a tight range with a slight negative trait down 0.11 percent.

Event in focus

The markets sentiments in trade remained rather glum in spite of Greek bailout as markets viewed persistent debts burden still an encumbrance to resurgence. Looking into the evening session, U.S existing home sales data would be a pivotal data to look for and is expected to be in line with last weeks’ housing numbers showcasing augmentation further justifying underlying strength in the U.S economic recuperation. This strong numbers could be manifested to improving job market and wages. In wake of the Greece bailout, ECB meeting in Frankfurt on Thursday would be a marquee event as statements following this meet could fuel fickleness in the financial markets.

GOLD mini
Mcx March

Prices still have rooms for upside gains, to ensure this budge, counter need to make plausible trades above 28400 region and such winning moves will uncover the region of 28480/28560 or even higher towards 28750. Anyhow, abortive attempts to break 28400 could bring long liquidation pressure towards 28240/28090.

SILVER mini
Mcx February

57500-700 region looks critical to continue further upside. For the day, if unable to cross above the same, prices likely to come down and retest the recent swing low support of 56500/56000 followed by 55400 levels. However, a direct rise above 57700 could target 58100/59800.

COPPER
Mcx February

Dips to 414 likely to find support for a turn higher initially towards 419 followed by 421/424 levels. A direct dip below 409 could negate such positive sentiments and trigger strong selling again.

NICKEL
Mcx February

As long as 1010 caps the upside, prices likely to come down and find support initially at 988 followed by 972 later. A direct rise above 1010 would be an early signal of strong rallies.

CRUDEOIL
Ncdex/Mcx March

As long as 5270 caps upside, expect prices to trade in a tight range 5270-5225. Break above, with brawny volumes could see the commodity revisiting highs of 5325/5350. In contrast, splinter past 5225, could call for bears to take control and push prices lower towards 5180 for the intraday. Break below this level would be signs of further bearishness towards 5150.

NATURAL GAS
Mcx February

Prices slid listlessly after touching the upside hurdle of 135 region, some days back. This reiterates selling pressure is dominating which point towards 127/123 region followed by 119 region. But if prices accomplished above 135 region could show way towards 137/142.



Source: Geojit Comotrade