Tuesday, May 24, 2011

Commodity Trading in India


Nickel yesterday traded with the negative node and settled -5.21% down at 1012.4 as manufacturing slowed in China, a preliminary Chinese purchasing managers’ index compiled by HSBC Holdings Plc and Markit Economics dropped to 51.1 in May, the lowest in 10 months. 

Nickel output rose to a record by 2008, in part because Ferreira boosted relations with local unions and took a consensus-building approach that impressed fellow executives and labor representatives such as United Steelworkers Union leader Leo Gerard. 

Spot nickel prices slipped sharply, dampening traders' interest to do business, with only few traders entering market to replenish goods. Amid bearish sentiment, purchases from downstream consumers were also limited. For today's session market is looking to take support at 993.6, a break below could see a test of 974.8 and where as resistance is now likely to be seen at 1047.6, a move above could see prices testing 1082.8.

Trading Ideas:
Nickel trading range is 974.8-1082.8.
Nickel ended down more than 5 percent with worsening chart pictures speeding liquidation.
Nickel is having resistance at 1047.60 and support at 993.60 level.

Spread between nickel MAY & JUN contracts yesterday traded in the range of 9.30 - 18.4.
Natural gas yesterday traded with the positive node and settled 3.09% up at 197.3 extended sharp gains from the previous session on Monday, jumping to a three-week high after forecasts showed warmer-than-normal temperatures across much of the U.S., boosting demand expectations for the fuel. 

Industry weather group MDA Federal said that temperatures this week are expected to be warmer-than-normal from the Gulf Coast through the upper Midwest and parts of the Northeast, with warmth seen lingering through next weekend along the East Coast. Meanwhile, the Commodity Weather Group said that next week “should be the warmest of the season so far for the East Coast cities as temperatures persistently reach the 80s. 

Combined with moderate humidity levels, it could feel like the 90s at times." In yesterday's trading session natural gas has touched the low of 190.9 after opening at 191.5, and finally settled at 197.3. For today's session market is looking to take support at 192.8, a break below could see a test of 188.4 and where as resistance is now likely to be seen at 199.8, a move above could see prices testing 202.4.

Natural Gas trading range is 188.4-202.4.
Natural gas climbed after weather forecasts calling for warmer-than-usual temperatures rising demand.
Natural gas looks to test support at 192.80 and resistance is seen at 199.80.

Buyers cautiously re-entering market but prices may not climb without additional signs of demand
Aluminium yesterday traded with the negative node and settled -0.8% down at 111.85 after the preliminary HSBC data shows that the PMI in manufacturing sector during May slipped to a 10-month low, triggering investor concerns over China’s economic growth. 

Fitch Ratings cut Greece's credit rating by three levels to B+, four levels below investment grade, from BB+, and S&P’s downgraded its outlook for Italy’s credit rating from stable to negative, both weighing down the euro and boosting the US dollar index. 

The US dollar index opened at 75.76 and closed at 75.69, down 0.92%. Weak economic data and stronger US dollar drove LME aluminum prices down. LME aluminum prices slipped all the way to a low of USD 2,465/mt after opening at USD 2,506/mt, and rallied slightly at the tail of trading, with prices finally closing at USD 2,484/mt, down USD 18/mt compared with the previous trading day. 

For today's session market is looking to take support at 111.2, a break below could see a test of 110.6 and where as resistance is now likely to be seen at 112.5, a move above could see prices testing 113.2.

Trading Ideas:
Aluminium trading range is 110.6-113.2.
WBMS: Global aluminum market in 252,000-ton surplus January-March
Aluminium is taking resistance at 112.50 and support is seen at 111.20.
Aluminium daily stocks at Shanghai exchange came down by 4401 tonnes.

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