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Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 1
Daily Commodity Roundup as on Tuesday, December 04, 2018
Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 2
NIKKEI22327
1.11 0.82 -1.1USDINR
70.63 S&P
INDEX
2760
DJIA25538
0.13 0.06 0.79SENSEX
36241NIFTY
10884
$ INDEX96.78
-0.05 0.38 -0.19
LME ALUMINIUM
1973 LME
LEAD
1969
11225
0.13 -0.19 0.27
LME
COPPER
6258 LME
ZINC
2571
IN
TER
NA
TIO
NA
L M
AR
KET U
PD
ATE GOLD $
1235.75SILVER $
USDJPY113.271
0.18 0.14 -0.3EURUSD
1.1375GBPUSD
1.27419
LME
NICKEL
14.44CRUDE $
52.95
0.45 0.62 3.97
#
#
#
#
RESIST 1 SUPPORT 1 SUPPORT 2
Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 3
Trading Ideas :Gold trading range for the day is 30114-31294.
U.S. and Chinese leaders brokered a truce in their trade conflict, a relief for the global economic outlook and a tonic for emerging markets.
Speculators increased their net short position in gold by 8,464 contracts to 51,828 contracts, according to U.S. CFTC data.
Physical gold demand in the world’s second biggest bullion consumer India got a fillip this week from a slide in local rates due to gains in the rupee.
Gold prices gained as the dollar weakened on U.S.-China trade truce that revived investor demand for riskier assets.
Gold on MCX settled up 2.13% at 30889 as the dollar weakened on U.S.-
China trade truce that revived investor demand for riskier assets. Top
U.S. Federal Reserve officials say a strong economy will likely keep their
rate increase plans intact, but a key signal began to waver that may
intensify debate about whether conditions are as solid as they seem.
Traders will be monitoring trade developments after the U.S. and China
agreed to a ceasefire in their trade war, while awaiting fresh indications
on the direction of U.S. monetary and an update on the health of the U.S.
labor market. The U.S. agreed not to increase the 10% tariffs on $200
billion worth of Chinese imports on Jan. 1 following talks between U.S.
President Donald Trump and his Chinese counterpart Xi Jinping over the
weekend. The two sides will engage in new trade negotiations with the
goal of reaching an agreement within 90 days. If no new agreement is
reached in this time the 10% tariffs will be raised to 25%. The trade spat
between the world’s two largest economies has unnerved global financial
markets and acted as a drag on global growth. The U.S. non-farm
payrolls report for November, scheduled to be published on Friday, is
expected to show that jobs growth slowed while wage growth picked up
slightly. An uptick in wage growth would help underline expectations for a
December rate hike. Technically market is under fresh buying as market
has witnessed gain in open interest by 8.98% to settled at 12762 while
prices up 645 rupees, now Gold is getting support at 30502 and below
same could see a test of 30114 level, And resistance is now likely to be
seen at 31092, a move above could see prices testing 31294.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
30316
SUPPORT 3
31682 31294 31092 30502 30114 29912
30906 30316 30889 2.13 12762
RESIST 3 RESIST 2
MCX Gold Feb 2019
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SUPPORT 2 SUPPORT 3
Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 4
Trading Ideas :Silver trading range for the day is 36150-37870.
U.S. President Donald Trump and his Chinese counterpart Xi Jinping agreed to not introduce any new tariffs for 90 days.
China and the United States agreed to halt additional tariffs in a deal that keeps their trade war from escalating as the two sides try again to bridge their differences.
Investors will also be turning their attention to U.S. monetary policy, ahead of an expected rate hike by the Federal Reserve at its upcoming meeting later this month
Silver prices rose the dollar dropped after news that the U.S. and China agreed to put any new tariffs on hold for 90 days.
Silver on MCX settled up 3.01% at 37108 as a drop in the dollar lent
support to the precious metal following news that the U.S. and China
agreed to put any new tariffs on hold for 90 days. At a meeting during the
G20 summit in Argentina over the weekend, U.S. President Donald Trump
and his Chinese counterpart Xi Jinping agreed to not introduce any new
tariffs for 90 days. During that time, the two countries will work to
resolve wider structural problems in the trade relationship. As part of the
agreement, the U.S. will not increase the existing 10% tariffs on $200
billion worth of Chinese goods to 25% and the two countries will step up
trade talks for 90 days. After the time, if no deal is reached, the tariffs
will go up. Economic pressure stalled November growth in China's vast
manufacturing sector, the first time in over two years. Eurostat, the
European Union's statistics office, said on that November consumer prices
across the eurozone rose 2% as expected, down from 2.2% the previous
month. The Chicago PMI, rose to an 11-month high of 66.4 in November,
from October's 58.4, boosted by new orders which stood at a 54-month
high, according to a statement released Friday by the Institute for Supply
Management Chicago. The U.S. non-farm payrolls report for November,
scheduled to be published on Friday, is expected to show that jobs growth
slowed while wage growth picked up slightly. Technically market is under
short covering as market has witnessed drop in open interest by -14.81%
to settled at 23069 while prices up 1083 rupees, now Silver is getting
support at 36629 and below same could see a test of 36150 level, And
resistance is now likely to be seen at 37489, a move above could see
prices testing 37870.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
36605 37391
38349 37870 37489 36629 36150 35769
36531 37108 3.01 23069
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1
MCX Silver Mar 2019
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SUPPORT 2 SUPPORT 3
Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 5
Trading Ideas :Crudeoil trading range for the day is 3524-3892.
U.S. crude oil production has hit a record of more than 11.5 million barrels per day, resulting in swelling storage levels.
OPEC's biggest problem is surging production in the United States, where output has grown by around 2 million bpd in a year to more than 11.5 million bpd .
The Middle East dominated OPEC will on Dec. 6 meet at its headquarters in Vienna, Austria, to agree a joint output policy.
Crude oil gained after US and China agreed to a 90-day truce in their trade war, and ahead of a meeting by OPEC that is expected to result in a supply cut.
Crudeoil on MCX settled up 4.22% at 3727 after the United States and
China agreed to a 90-day truce in their trade war, and ahead of a meeting
by producer club OPEC that is expected to result in a supply cut. U.S.
crude prices were further pushed up by an announcement from Canada
that Alberta province will force producers to cut output by 8.7 percent, or
325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has
led to crude building up in storage. Most of Alberta's oil is exported to the
United States. China and the United States agreed during a weekend
meeting in Argentina of the Group of 20 (G20) leading economies not to
impose additional trade tariffs for at least 90 days while the pair hold
talks to resolve existing disputes. Crude oil has not been included in the
list of hundreds of products each side has slapped with import tariffs, but
traders said the positive sentiment of the truce was also driving crude
markets. Looking ahead, oil traders will eye a meeting by the
Organization of the Petroleum Exporting Countries (OPEC) on Dec. 6. At
the meeting, the producer group, along with non-OPEC member Russia, is
expected to announce cuts aimed at reining in a production overhang that
has pulled down crude prices by around a third since October. No official
announcements regarding supply cuts have yet been made, but most
analysts expect a reduction of 1 million-1.4 million bpd versus October
levels, which were the highest by OPEC as a group since December 2016.
Technically now Crudeoil is getting support at 3626 and below same could
see a test of 3524 level, And resistance is now likely to be seen at 3810,
a move above could see prices testing 3892.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
3606 3790
3994 3892 3810 3626 3524 3442
3606 3727 4.22 15549
RESIST 3 RESIST 2 RESIST 1 SUPPORT 1
MCX Crudeoil Dec 2018
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RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Copper trading range for the day is 428.2-454.2.
China’s copper downstream industries contracted slower compared to a month earlier in November as production and new orders weakened at a slower pace.
Chile’s state copper miner Codelco, said it had reached agreement on a new collective labour contract with the union of workers at its Ministro Hales mine in northern Chile.
Warehouse stock for Copper at LME was at 134200mt that is down by -1975mt.
Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 6
Copper gained after U.S. and Chinese leaders agreed to a ceasefire in a trade dispute that has shaken global markets.
Copper on MCX settled up 1.96% at 441.60 were mostly higher with
broadly positive market sentiment emerging from the weekend’s summit
in Argentina of the leaders of the G20 group of nations, while the United
States and China agreed to limit further use of trade tariffs. Copper prices
are expected to stay at highs as a ceasefire in the US-China trade war,
the Fed’s dovish tone and expected oil supply cuts prompt investors to
shun safe-haven US currency and to turn to riskier assets. LME copper’s
three-month price has remained in positive territory for much of the
November-December trading period, staying above $6,200 per tonne and
rising by 1.5% on Monday, while volumes topped the complex with
23,759 lots changing hands by the close. This week metals traders will be
monitoring trade developments after the U.S. and China agreed to a
ceasefire in their trade war, while awaiting fresh indications on the
direction of U.S. monetary and an update on the health of the U.S. labor
market. The US agreed not to increase the 10% tariffs on $200 billion
worth of Chinese imports on Jan. 1 following talks between U.S. President
Donald Trump and his Chinese counterpart Xi Jinping over the weekend.
If no new agreement is reached in this time the 10% tariffs will be raised
to 25%. The trade spat between the world’s two largest economies has
unnerved global financial markets and acted as a drag on global growth.
Federal Reserve Chairman Jerome Powell is due to testify about the
economic outlook to Congress on Wednesday. Now technically market is
getting support at 434.9 and below same could see a test of 428.2 level,
And resistance is now likely to be seen at 447.9, a move above could see
prices testing 454.2.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
434.50
SUPPORT 3
460.9 454.2 447.9 434.9 428.2 421.9
447.50 434.50 441.60 1.96 9255
RESIST 3 RESIST 2
MCX Copper Feb 2019
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#
RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Zinc trading range for the day is 180.3-188.9.
A total of 79 Chinese cities have triggered air pollution alerts as severe winter smog covers wide swaths of the country.
US President Trump told Chinese President Jinping that he would not boost tariffs on $200 billion of Chinese goods to 25 percent on Jan. 1 as previously announced.
Warehouse stock for Zinc at LME was at 112575mt that is down by -4975mt.
Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 7
MCX Zinc Dec 2018
Zinc prices recovered on short covering after prices pounded by expectations of weak demand from top consumer China.
Zinc on MCX settled up 2.86% at 185.35 gained on fresh buying tracking
LME zinc prices which rose to close at $2,575.5/mt overnight, exceeding
all moving averages. As support seen after falling LME inventories
widened the LME zinc's cash/three-month spread to a record high. LME
zinc to continue its strong performance today with a trading range of
$2,550-2,600/mt. Despite low inventories, the earlier losses in SHFE zinc
reflected limited upward momentum in prices, due to weakening
consumption as the year draws to a close. This week metals traders will
be monitoring trade developments after the U.S. and China agreed to a
ceasefire in their trade war, while awaiting fresh indications on the
direction of U.S. monetary and an update on the health of the U.S. labor
market. The US agreed not to increase the 10% tariffs on $200 billion
worth of Chinese imports on Jan. 1 following talks between U.S. President
Donald Trump and his Chinese counterpart Xi Jinping over the weekend.
The two sides will engage in new trade negotiations with the goal of
reaching an agreement within 90 days. If no new agreement is reached in
this time the 10% tariffs will be raised to 25%. The U.S. non-farm
payrolls report for November, scheduled to be published on Friday, is
expected to show that jobs growth slowed while wage growth picked up
slightly. An uptick in wage growth would help underline expectations for a
December rate hike. Now technically market is under fresh buying as
market has witnessed gain in open interest by 17% to settled at 2539
while prices up 5.15 rupees, now Zinc is getting support at 182.9 and
below same could see a test of 180.3 level, And resistance is now likely to
be seen at 187.2, a move above could see prices testing 188.9.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
182.0
SUPPORT 3
191.5 188.9 187.2 182.9 180.3 178.6
186.4 182.0 185.4 2.86 2539
RESIST 3 RESIST 2
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#
RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Nickel trading range for the day is 777.3-805.3.
China and the United States agreed to halt additional tariffs in a deal that keeps their trade war from escalating.
Nickel ore output in the Philippines, fell 1 percent in the first nine months of 2018 from a year earlier to 22.2 million dry metric tonnes.
Warehouse stock for Nickel at LME was at 212844mt that is down by -726mt.
Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 8
MCX Nickel Dec 2018
Nickel rallied after the United States and China agreed to a ceasefire in a trade dispute that has shaken markets and weighed on metals prices.
Nickel on MCX settled up 1.94% at 789.80 on fresh buying as Trade war
relief for metals seen but bull-bear battle rages still on. The Chinese
version of this weekend’s meeting, however, was curiously silent on the
90-day hiatus. Other than noting that “the two sides decided to avoid
escalation of trade restrictive measures”, official Chinese news agency
Xinhua did not go into many details at all. This narrative gap leaves
markets both uncertain about whether the truce can hold and beholden to
news flow from the planned U.S.-China consultations. Discretionary
money is unlikely to recommit to industrial metals on the long side until
the smoke signals become clearer. This week metals traders will be
monitoring trade developments after the U.S. and China agreed to a
ceasefire in their trade war, while awaiting fresh indications on the
direction of U.S. monetary and an update on the health of the U.S. labor
market. The US agreed not to increase the 10% tariffs on $200 billion
worth of Chinese imports on Jan. 1 following talks between U.S. President
Donald Trump and his Chinese counterpart Xi Jinping over the weekend.
The U.S. non-farm payrolls report for November, scheduled to be
published on Friday, is expected to show that jobs growth slowed while
wage growth picked up slightly. An uptick in wage growth would help
underline expectations for a December rate hike. Now technically market
is under fresh buying as market has witnessed gain in open interest by
5.79% to settled at 14188 while prices up 15 rupees, now Nickel is
getting support at 783.6 and below same could see a test of 777.3 level,
And resistance is now likely to be seen at 797.6, a move above could see
prices testing 805.3.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
785
SUPPORT 3
811.6 805.3 797.6 783.6 777.3 769.6
799 785 789.8 1.94 14188
RESIST 3 RESIST 2
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RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Jeera trading range for the day is 6330-6330.
According to the initial trade estimate, there may not be any increase in the sowing area of jeera because of dry weather.
NCDEX accredited warehouses jeera stocks dropped by 36 tonnes to 2122 tonnes.
In Unjha, a key spot market in Gujrat, jeera remains unchanged at0 rupees to end at 19324 rupee per 100 kg.
Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 9
NCDEX Jeera Jan 2019
Jeera gained tracking firmness in spot demand amid deficient rainfall in key producing region of Gujarat like Saurashtra and Kutch may lower the acreage.
Jeera on NCDEX settled down -0.92% at 18870 due to higher supply in
the spot market while the export demand is lower. However, improved
cultivation on assurance of irrigation in Gujarat capped the upside
momentum. Meanwhile, jeera arrivals in Unjha mandi, Gujarat were
4,061 bags (20 Kg/bag), compared to 3,102 bags. Jeera sowing in
Gujarat fell to 44,200 hectares from 130,100 hectares a year ago due to
lack of water, state government data showed. Sowing is likely to pickup
in the coming weeks. However, there are doubts of any increase in
acreage due to dry weather. Moreover, concern that standing cumin crops
might get affected amid scanty rainfalls also supported upward trend in
prices. Deficient rainfall in key producing region of Gujarat like Saurashtra
and Kutch may lower the acreage. According to the initial trade estimate,
there may not be any increase in the sowing area of jeera because of dry
weather. According to the market estimates, India has already exported
around 1.25 lakh tonnes of jeera so far this year and there is a possibility
of it touching a record 1.75 lakh tonnes by the end of this fiscal year. As
per Gujarat state govt. data, Jeera progressive area of Rabi 2018-19,
18,400 hectares as compared to previous Rabi season 59,400 hectares,
6% completed from normal area 318,900 hectares. Current year sowing
reported slow due to lower rainfall. Technically market is under fresh
selling as market has witnessed gain in open interest by 1.71% to settled
at 1782 while prices down -175 rupees, now Jeera is getting support at
18710 and below same could see a test of 18550 level, And resistance is
now likely to be seen at 19090, a move above could see prices testing
19310.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
19030
SUPPORT 3
19170 19115 19050 18930 18875 18810
19060 18940 18990 0.64 1920
RESIST 3 RESIST 2
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#
RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Turmeric trading range for the day is 6594-6810.
According to farmers and traders this year production in Maharashtra can be less than last year.
NCDEX accredited warehouses turmeric stocks gained by 99 tonnes to 3289 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 7060.4 Rupees gained 21.75 Rupees.
Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 10
NCDEX Turmeric Apr 2019
Turmeric gained on expectation of improving upcountry demand in coming weeks.
Turmeric on NCDEX settled up by 0.87% at 6700 on expectation of
improving upcountry demand in coming weeks. However, upside seen
limited amid increased acreage of turmeric in Tamilnadu, Karnataka and
Maharashtra and slip in exports. According to farmers and traders this
year production in Maharashtra can be less than last year. Deficit rainfall
in Maharashtra and Karnataka affected Turmeric standing crop. Lower
rainfall reported in Maharashtra Marathwada turmeric growing regions like
Hingoli, Sangli, Nanded, Basmath affect Turmeric standing crop. Turmeric
output this year is expected to be higher in the states of Tamilnadu,
Karnataka and Maharashtra. According to the Department of Horticulture
and Plantation Crops of Tamil Nadu, acreage of turmeric in Erode may
jump nearly 80% on year to 5,300 hectare in 2018-19 (Jul-Jun) because
of very good rainfall and availability of other water sources. In
Telangana, turmeric acreage rose to 47,790 hectare compared to 44,956
hectare a year ago, state government data showed. In Andhra Pradesh
farmers planted turmeric over an area 18,000 hectares up from 14,000
hectares a year ago. Turmeric exports during the month of September
were up 16.5% to 9,064 tons compared to 7,783 tons in the
corresponding period a year ago, according to Ministry of Commerce data.
Turmeric exports during Apr-Sep jumped 10.6% to 65,547 tons compared
to 59,285 in the same period a year ago. favourable. In Nizamabad, a
major spot market in AP, the price ended at 7060.4 Rupees gained 21.75
Rupees.Technically market is under fresh buying as market has witnessed
gain in open interest by 1.39% to settled at 12800 while prices up 58
rupees, now Turmeric is getting support at 6646 and below same could
see a test of 6594 level, And resistance is now likely to be seen at 6754,
a move above could see prices testing 6810.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
6758
SUPPORT 3
6862 6810 6754 6646 6594 6538
6758 6650 6700 0.87 12800
RESIST 3 RESIST 2
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#
RESIST 1 SUPPORT 1 SUPPORT 2
Trading Ideas :Menthaoil trading range for the day is 1572.5-1605.9.
Mentha oil spot at Sambhal closed at 1759.40 per 1kg. Spot prices was down by Rs.-72.10/-.
According to preliminary estimates, mentha oil production in 2018-19 would be 40,000-45,000 ton against last year's production of 35,000 tons.
However, in recent years, the growth in production and consumption of synthetic mentha has influenced the demand for natural mentha.
Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 11
MCX Menthaoil Dec 2018
Menthaoil settled down as spot markets are witnessing low demand amid adequate supply which weighed on prices.
Mentha oil on MCX settled down by -4% at 1583.6 as spot markets are
witnessing low demand amid adequate supply which weighed on prices.
Low demand outlook in mentha oil in domestic as well as global market
due to expectation of recovery in Indian Rupee against the U.S dollar.
Bumper crop harvest has been discounted in the market and market is
moving upwards on rising demand from end users. Arrivals in Sambhal
stood at 400 drums compared to 350 drum a day ago while in Barabanki
supplies rose to 500 drums from 450 drums a day earlier. According to
preliminary estimates, mentha oil production in 2018-19 would be 40,000-
45,000 ton against last year's production of 35,000 tons. There could be
chances of crop damage to certain extend due to unfavourable weather
condition. Mandi Department, which assumes Mentha as an agricultural
product and receives the mandatory duty of one and a half percent, the
GST of the same commerce tax department, Mentha crop, is not
considered as agricultural product and 15 percent GST is charged. Due to
this double tax, the price of mentha product increases, whereas synthetic
mentha is much cheaper, so many companies making mentha products
have started using synthetic mentha. Mentha oil spot at Sambhal closed
at 1759.40 per 1kg. Spot prices was down by Rs.-72.10/-.Technically
market is under fresh selling as market has witnessed gain in open
interest by 3.36% to settled at 1170 while prices down -65.9 rupees, now
Menthaoil is getting support at 1578.1 and below same could see a test of
1572.5 level, And resistance is now likely to be seen at 1594.8, a move
above could see prices testing 1605.9.
OPEN HIGH LOW CLOSE % CHANGE OPEN INTEREST
1600.30
SUPPORT 3
1611.5 1605.9 1594.8 1578.1 1572.5 1561.4
1600.30 1583.60 1583.60 -4.00 1170
RESIST 3 RESIST 2
TIME ZONE Forecast
CommodityLME STOCK Stock
COPPER -1975 134200
ALUMINIUM -4425 1048025
NICKEL -726 212844
LEAD -75 105125
ZINC -4975 112575
0 0 0 0 0
Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 12
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
All Day EUR ECOFIN Meetings 0 0
8:30pm USD FOMC Member Williams Speaks 0 0
1:30pm EUR Spanish Unemployment Change 34.2K 52.2K
3:30pm EUR PPI m/m 0.005 0.005
Fresh Buying
LME DAILY STOCK POSITION ECONOMICAL DATA
DATA Previous
1:15pm EUR French Gov Budget Balance 0 -87.1B
TREND Fresh Selling Short Covering Fresh Buying Fresh Buying Fresh Buying Fresh Selling Fresh Buying Fresh Selling
712
Cng in OI 5.69 -9.77 7.74 15.06 1.39 22.60 3.89 10.17 3.04
SUPPORT
4499 21200 18810 4320 6538 3925 475.6 3279
720
4567 21380 18875 4348 6594 3953 479.5 3320 715
4613 21720 18930 4384 6646 3980 484.0 3348
487.9 3389 723
736
4795 22420 19115 4476 6810 4063 496.3 3458 731
500.8 3486
492.4 3417 728
P. POINT 4681 21900 18995 4412 6702 4008
4727 22240 19050 4448 6754 4035
RESISTANCE
4841 22760 19170 4512 6862 4090
4660 22050 18990 4421 6700 4007 488.4 3377
DAILY MARKET TRADING LEVEL
COMMODITIESNCDEX Chana Jan
2019
NCDEX Cotton Dec
2018
NCDEX Jeera Jan
2019
NCDEX Guarseed10
Jan 2019
NCDEX Turmeric
Apr 2019
NCDEX Rmseed Jan
2019MCX CPO Dec 2018
NCDEX Soyabean
Jan 2019
NCDEX
Ref.Soya oil
Jan 2019
725.65CLOSE
-1975
-4425
-726
-75
-4975
-6000
-5000
-4000
-3000
-2000
-1000
0
COPPER ALUMINIUM NICKEL LEAD ZINC
LME STOCK
NEWS YOU CAN USE
China will step up policy support for provinces facing sharp economic slowdowns and will take steps to ward off regional financial risks, the Xinhua news agency quoted
the cabinet as saying. China is facing its weakest economic growth since the global financial crisis and policymakers are fast-tracking road and rail projects, pushing banks
to increase lending, and cutting taxes to ease strains on businesses. Targeted policy steps will be taken to help “regions where economic growth slows down due to
objective reasons” to ensure their economic operation is within a reasonable range, Xinhua cited the cabinet as saying. “We should strengthen monitoring and early
warning in areas with high leverage ratios, strengthen cooperation in local financial supervision and risk prevention, and more effectively prevent and resolve systemic
regional financial risks,” it said. The cabinet called for increased coordination between fiscal, monetary and investment polices to support inter-regional projects in
transport, water conservancy and environment projection. China faces problems of big regional economic disparities, disordered and imbalanced regional development
and vicious competition among regions, the cabinet said. Authorities aim to establish a new mechanism for coordinated regional development that is compatible with
building a well-off society by 2020 and a new regional development mechanism that is compatible with its basic modernization by 2035, it said.
Corporate lending growth slowed in the euro zone last month, European Central Bank data showed, in what could be an early sign that a worsening economic outlook is
starting to take its toll on credit. Loans to companies increased by 3.9 percent year-on-year in October, the slowest pace since May, after hitting a post-crisis high of 4.3
percent in September. One weak reading was unlikely to derail the ECB’s plans to stop its 2.6 trillion euro (2.30 trillion pounds) bond-buying program at the end of
December and raise interest rates for the first time since 2011 sometime after next summer. But it added to a constellation of indicators showing that the euro zone
economy is slowing, which has already prompted investors to push back expectations for an ECB rate hike to 2020. ECB President Mario Draghi said a “gradual slowdown
is normal” and some of it may even be temporary, indicating the central bank was sticking to its plan. On a comforting note, growth in credit to households came in at 3.2
percent, stable from September’s revised reading, Wednesday data showed. And growth in money circulating in the euro zone unexpectedly picked up even as the ECB
reduced its bond purchases.
Cotton procurement in Telangana, which started last week, has gathered pace as prices in some places have eased to touch the minimum support price, a senior official
with Cotton Corp of India said. The state-owned agency has so far procured nearly 10,000 bales (1 bale = 170 kg) of raw cotton at Khammam, Warangal and
Mahbubnagar centres in Telangana, compared with 4,000 bales a week ago. The agency has also procured around 300 bales in Khargone district, marking its first
procurement in Madhya Pradesh in the current season, he said. The Centre has fixed minimum support price for the medium-staple variety of cotton at 5,150 rupees per
100 kg, and that for long staple at 5,450 rupees per 100 kg, both 1,130 rupees higher than last year. “Procurement, however, is still slow as prices in some big centres in
Telangana are above the support level,” the official said adding that prices will decline only if the supply pressure increases from south and central zones. Even in the
peak arrivals season, cotton prices remained elevated due to delay in new crop by almost a month and concerns over the size of the crop due to drought in top two states
Maharashtra and Karnataka. Weak rains and high temperatures in Gujarat are likely to severely hit cotton yields. The Cotton Association of India recently scaled down its
production estimate for 2018-19 (Oct-Sep) to 34.3 mln bales from 34.8 mln bales projected in October.
Date : Tuesday, December 04, 2018 URL : www.systematixshares.com Page No : 13
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