11/19/2010 05:48:00 PM
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MCX Commodity Trend
MCX Zinc futures is showing some respiration after getting strangulated by sellers earlier this month. The major cause of rally in todays market has been some relief from Dollar side that is now down 63 pips against the EURO at 1.3706. The investors also thought that the selling in Zinc has been a bit overdone as of now that brought back some short covering in the contract. MCX Zinc was trading at Rs 115 per kg earlier this month on 9 Nov 2010, from where one has seen some high amount of risk aversion and profit booking.
Nickel prices are facing severe correction in the markets as the traders returned to short their positions. The most active Nickel contract on MCX, is trading at Rs 979.7 per kg, down Rs 11, or 1.1%. The selling in markets is the result of diceyness in currency markets. On Thursday, Dollar was down against the EURO as the initial jobless claims for unemployment insurance rose slightly last week to 439,000 from 437,000 (revised from 435,000). Dollar now quotes at 1.3634 sideways against EURO. The Dollar ended at 1.3643 against the EURO on Thursday.
NCDEX Commodity review
Guar Review - Emergence of demand for Guar gum due to fresh export enquiries may support Guar prices in the present week. However, prices may trade range bound in the short term (2-3 weeks) supply pressure due to increased arrivals may be overshadowed by the increased export demand. In the medium term trend would depend on the pace of arrivals, the demand from the overseas markets and the movement of Indian Rupee against US dollar.
Guar Prices closed above its 10-Day and its 20-Day EMA indicating an uptrend.
• 14-days RSI is at 68.23 and is moving towards overbought
region.
• MACD is in the positive territory.
Chana prices may trade lower in the short term due to rising arrivals of Kharif pulses coupled with increasing area under Rabi Pulses (especially Chana). December onwards, trend in Chana futures may depend on the reports sowing of Rabi Pulses which is presently expected to be higher due to increase in MSP of Pulses.
Chana Prices on daily charts closed below its 10-days and its 20-days EMA, indicating downward trend.
• 14-days RSI is at 49.14 and is in neutral zone.
• MACD is in the negative territory.
Turmeric prices in the intraday are expected to trade bullish due to revival of demand from the overseas and domestic buyers. Prices in short term (till November), will depend on demand from the domestic and overseas buyers and
growth of sown crop. In the long to medium term (December onwards), prices is likely to take cues from the turmeric stocks and production estimates reported by the spot market participants.
Prices closed above its 10-Day’s and its 20-Day’s EMA indicating bullish trend.
• 14-Day RSI is at 77 and is nearing the overbought region.
• MACD is in the positive territory.
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