It took a couple of sessions but finally in line with our view the domestic markets underwent a sharp relief rally yesterday. The benchmark indices managed to close near day’s high with massive gains. The index Nifty spot initially remained under pressure but as the day progressed it gained strength to close well above 11700 mark with a rise of 150 points. Meanwhile, the Nifty Bank index too surged around 400 points.
As the day progressed, market breadth turned in the favour of advancing counters which indicates broad based buying. On the sectoral front, apart from NIFTY AUTO (-0.42%) all the other group indices managed to close in positive terrain. From the gainers, NIFTY PSU BANK (+1.54%) and NIFTY BANK (+1.29%) stocks remained under limelight. From the F&O space, RELCAPITAL (+9.10%), INFIBEAM (+7.90%) and CGPOWER (+7.58%) were the biggest gainers..
MARKET OUTLOOK
NIFTY DAILY CHART :
We have been maintaining our stance that, if the support of 11550 is held then we might witness a relief rally going ahead. In line with that, Nifty displayed a sharp surge during yesterday’s session and cleared the hurdle of 11650 – 11730 also. Now going ahead, a move above 11750 might full the index towards all-time high. Although we are bullish for short term but we continue to maintain our medium term view that this rally should be used to book profits in long positions.
In case of any downside, 11650 – 11550 levels are likely to attract buying interest in coming sessions. Due to F&O expiry we expect some volatility and thus continue to advice traders to avoid overleveraged positions and maintain strict stop loss.
Posted by Mehul Kothari | Published on 24-APR-2019
BULLION Gold and silver prices slides to 4-months low on strong dollar. Trend volatile Review Yesterday, both the precious metals were trades weak in international markets. Gold settled at $1273.20 per troy ounce down by 0.34% while silver settled at $14.79 per troy ounce down by 1.20%. Domestic markets were also settled weak. Gold settled at Rs.31562 per 10 gram with the loss of 0.11% and MCX Silver settled at 36976 per 1 kilogram with the loss of 1.08%. Gold and silver prices slides to 4months low in yesterday are trading session. Strong rally in Dollar index and U.S. equity markets puts pressure on precious metal prices. U.S. equity index are near record high is main element to pushes precious metals down. Strong dollar, positive U.S. equities and positive Chinese data is negative for bullion prices. We expect Gold will test its key support level of $1260. Gold is having support at $1266-1260 and resistance at $1278-1284. Silver is having support at $14.64-14.50 while resistance at $14.94-15.10. TECHNICAL OUTLOOK
Today, Gold is having support at 31461-31360 while resistance at 31651-31741, silver is having support at 36719-36462 and resistance at 37344-37712. Traders are suggested to trade in a range with strict stop loss.
ENERGY Crude oil prices extend rally after U.S. sanctions on Iran. Trend firm. Review Yesterday, Crude oil prices trade positive in international market WTI Crude settled at $66.30 while Brent settled at $74.46 per barrel. At MCX Crude oil settled positive at 4641 per barrel with the gain of 1.05%. Crude oil prices extend rally and hover to 2019 high after Washington abruptly moved to end all Iran sanctions waivers by May, pressuring importers to stop buying from Tehran. Now that Trump has put into action his plan to bring Iranian oil exports to zero, he expects OPEC+ members, which include Russia, to quickly reverse their production cuts, as well as replace lost barrels from Iran and other sources such as Venezuela and Libya. Saudi Energy Minister Khalid al-Falih said on Monday the kingdom will work to ensure the availability of oil supplies and the lack of market imbalance following the end of the U.S. sanction waivers on Iran. Market will take direction from today’s U.S. weekly inventory data. We expect crude oil to test resistance level of $67.50. Crude oil is having support at $65.80-65.20 and resistance at $67-67.50. TECHNICAL OUTLOOK
Crude oil is having support at 4599-4556 while resistance at 4675-4708, trades are suggested to trade in a range with strict stop loss.
BASE METALBase metals dip on improving supply and strong dollar. Trend volatile. ReviewYesterday, base metal prices settled weak in international market. 3M LME copper flat at $6424 per metric ton down by 0.60% from previous close. Base metal prices shows weakness as market is well supplied and strength in dollar index. Nickel prices hit a two-month low on Tuesday on signs of rising supply while the wider market also fell on a stronger dollar and uncertainty about the Chinese economy. Data showed the deficit in the global nickel market for the first two months of the year narrowed sharply to 5,700 tons, down from 24,400 tons in the same period last year. Zinc inventory is also rising in LME warehouse and which is also in pressure from last two-three trading sessions. We expect base metal prices remain volatile and strong dollar will be main villain for base metals. Today, Copper is having support around 444-441 while resistance at 449-452. Nickel will trade in a range of 848-888, Zinc will trade in a range of 221-226, and Lead will trade in a range of 131-136 while Aluminium trade in a range of 149-154.TECHNICAL OUTLOOK
Copper is having support at 444 and 441 while resistance at 449 and 452, traders are suggested to trade as per levels with strict stop loss.
AGRI COMMODITYWeak rupee and govt. procurement give breathe to agriculture commodities. Trend volatile. ReviewYesterday, Soybean settled positive in domestic markets at 3724 per quintal with the gain of 0.30%. CBOT were settled at 862. Weakness in rupee and government procurement in Chana and Mustard give breathe to agriculture commodities. Yesterday almost all counters settled in green but strong dollar and weakness at CBOT and Bursa Malaysia will puts pressure on oil complex. Other commodities at NCDEX settled positive, Chana settled with the gain of 0.34%, Castor seed settled positive with the gain of 0.04%. RM Seed closed positive with the gain of 0.64%. Guar Seed settled negative with the loss of 0.14% while Guar Gum settled with the loss of 0.02%. Spices pack settled positive Coriander, Jeera and Turmeric settled with gain. Cotton seed oilcake closed positive with the gain of 0.69%. Refined Soyoil closed positive with the gain of 0.24%. We expect Refined Soyoil to trade in a range of 730-747. TECHNICAL OUTLOOK
Soybean is having support around 3690-3660 while resistance at 3750-3780, Refined Soyaoil is having support at 734-730 while resistance at 744-747 traders are suggested to trade as per levels with strict stop loss.
News Source: Bloomberg, investing.com, kitco.com and ticker news.Disclaimer: This document is not to be construed as an offer to sell or the solicitation of an offer to buy any commodity. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the commodity and currencies mentioned in the report.)
Posted by Mehul Kothari | Published on 25-APR-2019
BULLION Gold and silver prices rebound from 4month low; strong dollar will limit gain. Trend volatile Review Yesterday, both the precious metals were trades positive in international markets. Gold settled at $1279.40 per troy ounce up by 0.49% while silver settled at $14.91 per troy ounce up by 0.81%. Domestic markets were also settled positive and weakness in rupees help prices in domestic markets. Gold settled at Rs.31818 per 10 gram with the gain of 0.81% and MCX Silver settled at 37482 per 1 kilogram with the gain of 1.37%. Gold and silver prices rebound in international markets from recent four months low on risk aversion and short coverings. Dollar index shows further strength and closes at multi month high which will limit gains in precious metals. In domestic markets weak rupee is supporting prices. We expect bullion prices remain volatile. Gold is having support at $1272-1266 and resistance at $1284-1292. Silver is having support at $14.74-14.60 while resistance at $15.04-15.20. TECHNICAL OUTLOOKToday, Gold is having support at 31599-31379 while resistance at 31938-32057, silver is having support at 37095-36709 and resistance at 37686-37891. Traders are suggested to trade in a range with strict stop loss.
ENERGY Crude oil prices dip as Iran sanctions offset by rising inventory in U.S. Trend firm. Review Yesterday, Crude oil prices traded slightly weak in international market WTI Crude settled at $65.89 while Brent settled at $74.57 per barrel. At MCX Crude oil settled weak at 4629 per barrel with the loss of 0.26%. Crude oil shows some profit booking from higher levels as U.S. Crude oil inventory rise and OPEC also hint for increase production. U.S. crude oil inventories surged more than expected last week, according to official government data released on Wednesday, although the report also indicated that OPEC may have already increased supply. The EIA said in its regular weekly report that crude oil inventories rose by 5.48 million barrels in the week to April 19. Rising inventory in U.S., OPEC hint for increase production and restore production in Venezuela will limits further gain in crude oil prices. We expect crude oil will trade in a range of $64.50-67. Crude oil is having support at $65.50-64.80 and resistance at $66.40-67. TECHNICAL OUTLOOKCrude oil is having support at 4595-4562 while resistance at 4677-4726, trades are suggested to trade in a range with strict stop loss.
BASE METALBase metals gain on hope of trade deal and Chinese growth. Trend volatile. ReviewYesterday, base metal prices settled positive in international market. 3M LME copper settled at $6444 per metric ton up by 0.31% from previous close. Base metal prices rebound in yesterday’s session amid hope of US-China trade deal, strong Chinese growth and weakness in rupee. The White House said that top U.S. officials will travel to Beijing for trade talks next week, with one leading official expressing optimism about striking a deal. Most industrial metals declined on Tuesday after comments by Chinese officials dampened hopes for more stimulus measures. It looks like the market is shifting its focus more towards the trade negotiations and also the brightening outlook for Chinese economy in the second half of the year. Gains were capped by strong dollar index but weakness in rupee supports prices in domestic markets. Now investors will closely watch Chinese April PMI data which is due next week and which gives direction to metal markets. Today, Copper is having support around 443-435 while resistance at 461-471. Nickel will trade in a range of 854-888, Zinc will trade in a range of 226-231, and Lead will trade in a range of 132-137 while Aluminium trade in a range of 150-155TECHNICAL OUTLOOKCopper is having support at 443 and 435 while resistance at 461 and 471, traders are suggested to trade as per levels with strict stop loss.
AGRI COMMODITYWeakness rupee and stockiest demand support agriculture commodities. Trend volatile. ReviewYesterday, Soybean settled positive in domestic markets at 3731 per quintal with the gain of 0.08%. CBOT were settled at 858. Weakness in rupee and demand of stockiest support agriculture commodities. Most of the commodities at NCDEX gain in yesterday’s session. CBOT and Bursa Malaysia is remain in pressure and which limits gain in oil complex. Castor seed and Coriander gain with increase in export demand in both the commodities. Other commodities at NCDEX settled positive, Chana settled with the gain of 0.09%, Castor seed settled positive with the gain of 2.72%. RM Seed closed positive with the gain of 0.13%. Guar Seed settled positive with the gain of 0.32% while Guar Gum settled with the loss of 0.03%. Spices pack settled positive Coriander, Jeera and Turmeric settled with gain. Cotton seed oilcake closed weak with the loss of 0.44%. Refined Soyoil closed positive with the gain of 0.55%. We expect Refined Soyoil to trade in a range of 737-750. TECHNICAL OUTLOOKSoybean is having support around 3700-3680 while resistance at 3760-3780, Refined Soyaoil is having support at 740-737 while resistance at 748-750 traders are suggested to trade as per levels with strict stop loss.
News Source: Bloomberg, investing.com, kitco.com and ticker news.
Disclaimer: This document is not to be construed as an offer to sell or the solicitation of an offer to buy any commodity. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the commodity and currencies mentioned in the report.)
Share Market Today - 25th April 2019
MARKET RECAP
Key Market Data Points
It took a couple of sessions but finally in line with our view the domestic markets underwent a sharp relief rally yesterday. The benchmark indices managed to close near day’s high with massive gains. The index Nifty spot initially remained under pressure but as the day progressed it gained strength to close well above 11700 mark with a rise of 150 points. Meanwhile, the Nifty Bank index too surged around 400 points.
As the day progressed, market breadth turned in the favour of advancing counters which indicates broad based buying. On the sectoral front, apart from NIFTY AUTO (-0.42%) all the other group indices managed to close in positive terrain. From the gainers, NIFTY PSU BANK (+1.54%) and NIFTY BANK (+1.29%) stocks remained under limelight. From the F&O space, RELCAPITAL (+9.10%), INFIBEAM (+7.90%) and CGPOWER (+7.58%) were the biggest gainers..
MARKET OUTLOOK
NIFTY DAILY CHART :
We have been maintaining our stance that, if the support of 11550 is held then we might witness a relief rally going ahead. In line with that, Nifty displayed a sharp surge during yesterday’s session and cleared the hurdle of 11650 – 11730 also. Now going ahead, a move above 11750 might full the index towards all-time high. Although we are bullish for short term but we continue to maintain our medium term view that this rally should be used to book profits in long positions.
In case of any downside, 11650 – 11550 levels are likely to attract buying interest in coming sessions. Due to F&O expiry we expect some volatility and thus continue to advice traders to avoid overleveraged positions and maintain strict stop loss.
Disclaimer
Previous Story
Commodity Research Report – 24th April 2019
BULLION Gold and silver prices slides to 4-months low on strong dollar. Trend volatile Review Yesterday, both the precious metals were trades weak in international markets. Gold settled at $1273.20 per troy ounce down by 0.34% while silver settled at $14.79 per troy ounce down by 1.20%. Domestic markets were also settled weak. Gold settled at Rs.31562 per 10 gram with the loss of 0.11% and MCX Silver settled at 36976 per 1 kilogram with the loss of 1.08%. Gold and silver prices slides to 4months low in yesterday are trading session. Strong rally in Dollar index and U.S. equity markets puts pressure on precious metal prices. U.S. equity index are near record high is main element to pushes precious metals down. Strong dollar, positive U.S. equities and positive Chinese data is negative for bullion prices. We expect Gold will test its key support level of $1260. Gold is having support at $1266-1260 and resistance at $1278-1284. Silver is having support at $14.64-14.50 while resistance at $14.94-15.10. TECHNICAL OUTLOOK Today, Gold is having support at 31461-31360 while resistance at 31651-31741, silver is having support at 36719-36462 and resistance at 37344-37712. Traders are suggested to trade in a range with strict stop loss. ENERGY Crude oil prices extend rally after U.S. sanctions on Iran. Trend firm. Review Yesterday, Crude oil prices trade positive in international market WTI Crude settled at $66.30 while Brent settled at $74.46 per barrel. At MCX Crude oil settled positive at 4641 per barrel with the gain of 1.05%. Crude oil prices extend rally and hover to 2019 high after Washington abruptly moved to end all Iran sanctions waivers by May, pressuring importers to stop buying from Tehran. Now that Trump has put into action his plan to bring Iranian oil exports to zero, he expects OPEC+ members, which include Russia, to quickly reverse their production cuts, as well as replace lost barrels from Iran and other sources such as Venezuela and Libya. Saudi Energy Minister Khalid al-Falih said on Monday the kingdom will work to ensure the availability of oil supplies and the lack of market imbalance following the end of the U.S. sanction waivers on Iran. Market will take direction from today’s U.S. weekly inventory data. We expect crude oil to test resistance level of $67.50. Crude oil is having support at $65.80-65.20 and resistance at $67-67.50. TECHNICAL OUTLOOK Crude oil is having support at 4599-4556 while resistance at 4675-4708, trades are suggested to trade in a range with strict stop loss. BASE METALBase metals dip on improving supply and strong dollar. Trend volatile. ReviewYesterday, base metal prices settled weak in international market. 3M LME copper flat at $6424 per metric ton down by 0.60% from previous close. Base metal prices shows weakness as market is well supplied and strength in dollar index. Nickel prices hit a two-month low on Tuesday on signs of rising supply while the wider market also fell on a stronger dollar and uncertainty about the Chinese economy. Data showed the deficit in the global nickel market for the first two months of the year narrowed sharply to 5,700 tons, down from 24,400 tons in the same period last year. Zinc inventory is also rising in LME warehouse and which is also in pressure from last two-three trading sessions. We expect base metal prices remain volatile and strong dollar will be main villain for base metals. Today, Copper is having support around 444-441 while resistance at 449-452. Nickel will trade in a range of 848-888, Zinc will trade in a range of 221-226, and Lead will trade in a range of 131-136 while Aluminium trade in a range of 149-154.TECHNICAL OUTLOOK Copper is having support at 444 and 441 while resistance at 449 and 452, traders are suggested to trade as per levels with strict stop loss. AGRI COMMODITYWeak rupee and govt. procurement give breathe to agriculture commodities. Trend volatile. ReviewYesterday, Soybean settled positive in domestic markets at 3724 per quintal with the gain of 0.30%. CBOT were settled at 862. Weakness in rupee and government procurement in Chana and Mustard give breathe to agriculture commodities. Yesterday almost all counters settled in green but strong dollar and weakness at CBOT and Bursa Malaysia will puts pressure on oil complex. Other commodities at NCDEX settled positive, Chana settled with the gain of 0.34%, Castor seed settled positive with the gain of 0.04%. RM Seed closed positive with the gain of 0.64%. Guar Seed settled negative with the loss of 0.14% while Guar Gum settled with the loss of 0.02%. Spices pack settled positive Coriander, Jeera and Turmeric settled with gain. Cotton seed oilcake closed positive with the gain of 0.69%. Refined Soyoil closed positive with the gain of 0.24%. We expect Refined Soyoil to trade in a range of 730-747. TECHNICAL OUTLOOK Soybean is having support around 3690-3660 while resistance at 3750-3780, Refined Soyaoil is having support at 734-730 while resistance at 744-747 traders are suggested to trade as per levels with strict stop loss. News Source: Bloomberg, investing.com, kitco.com and ticker news.Disclaimer: This document is not to be construed as an offer to sell or the solicitation of an offer to buy any commodity. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the commodity and currencies mentioned in the report.)
Next Story
Daily Commodity Research Report – 25th April 2019
BULLION Gold and silver prices rebound from 4month low; strong dollar will limit gain. Trend volatile Review Yesterday, both the precious metals were trades positive in international markets. Gold settled at $1279.40 per troy ounce up by 0.49% while silver settled at $14.91 per troy ounce up by 0.81%. Domestic markets were also settled positive and weakness in rupees help prices in domestic markets. Gold settled at Rs.31818 per 10 gram with the gain of 0.81% and MCX Silver settled at 37482 per 1 kilogram with the gain of 1.37%. Gold and silver prices rebound in international markets from recent four months low on risk aversion and short coverings. Dollar index shows further strength and closes at multi month high which will limit gains in precious metals. In domestic markets weak rupee is supporting prices. We expect bullion prices remain volatile. Gold is having support at $1272-1266 and resistance at $1284-1292. Silver is having support at $14.74-14.60 while resistance at $15.04-15.20. TECHNICAL OUTLOOKToday, Gold is having support at 31599-31379 while resistance at 31938-32057, silver is having support at 37095-36709 and resistance at 37686-37891. Traders are suggested to trade in a range with strict stop loss. ENERGY Crude oil prices dip as Iran sanctions offset by rising inventory in U.S. Trend firm. Review Yesterday, Crude oil prices traded slightly weak in international market WTI Crude settled at $65.89 while Brent settled at $74.57 per barrel. At MCX Crude oil settled weak at 4629 per barrel with the loss of 0.26%. Crude oil shows some profit booking from higher levels as U.S. Crude oil inventory rise and OPEC also hint for increase production. U.S. crude oil inventories surged more than expected last week, according to official government data released on Wednesday, although the report also indicated that OPEC may have already increased supply. The EIA said in its regular weekly report that crude oil inventories rose by 5.48 million barrels in the week to April 19. Rising inventory in U.S., OPEC hint for increase production and restore production in Venezuela will limits further gain in crude oil prices. We expect crude oil will trade in a range of $64.50-67. Crude oil is having support at $65.50-64.80 and resistance at $66.40-67. TECHNICAL OUTLOOKCrude oil is having support at 4595-4562 while resistance at 4677-4726, trades are suggested to trade in a range with strict stop loss. BASE METALBase metals gain on hope of trade deal and Chinese growth. Trend volatile. ReviewYesterday, base metal prices settled positive in international market. 3M LME copper settled at $6444 per metric ton up by 0.31% from previous close. Base metal prices rebound in yesterday’s session amid hope of US-China trade deal, strong Chinese growth and weakness in rupee. The White House said that top U.S. officials will travel to Beijing for trade talks next week, with one leading official expressing optimism about striking a deal. Most industrial metals declined on Tuesday after comments by Chinese officials dampened hopes for more stimulus measures. It looks like the market is shifting its focus more towards the trade negotiations and also the brightening outlook for Chinese economy in the second half of the year. Gains were capped by strong dollar index but weakness in rupee supports prices in domestic markets. Now investors will closely watch Chinese April PMI data which is due next week and which gives direction to metal markets. Today, Copper is having support around 443-435 while resistance at 461-471. Nickel will trade in a range of 854-888, Zinc will trade in a range of 226-231, and Lead will trade in a range of 132-137 while Aluminium trade in a range of 150-155TECHNICAL OUTLOOKCopper is having support at 443 and 435 while resistance at 461 and 471, traders are suggested to trade as per levels with strict stop loss. AGRI COMMODITYWeakness rupee and stockiest demand support agriculture commodities. Trend volatile. ReviewYesterday, Soybean settled positive in domestic markets at 3731 per quintal with the gain of 0.08%. CBOT were settled at 858. Weakness in rupee and demand of stockiest support agriculture commodities. Most of the commodities at NCDEX gain in yesterday’s session. CBOT and Bursa Malaysia is remain in pressure and which limits gain in oil complex. Castor seed and Coriander gain with increase in export demand in both the commodities. Other commodities at NCDEX settled positive, Chana settled with the gain of 0.09%, Castor seed settled positive with the gain of 2.72%. RM Seed closed positive with the gain of 0.13%. Guar Seed settled positive with the gain of 0.32% while Guar Gum settled with the loss of 0.03%. Spices pack settled positive Coriander, Jeera and Turmeric settled with gain. Cotton seed oilcake closed weak with the loss of 0.44%. Refined Soyoil closed positive with the gain of 0.55%. We expect Refined Soyoil to trade in a range of 737-750. TECHNICAL OUTLOOKSoybean is having support around 3700-3680 while resistance at 3760-3780, Refined Soyaoil is having support at 740-737 while resistance at 748-750 traders are suggested to trade as per levels with strict stop loss. News Source: Bloomberg, investing.com, kitco.com and ticker news. Disclaimer: This document is not to be construed as an offer to sell or the solicitation of an offer to buy any commodity. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the commodity and currencies mentioned in the report.)