COMMODITY NEWS AND TRADING LEVELS FOR 2ND MAY 2012

Commodity trading Levels

COPPER (JUNE) – The Chinese inventories have been easing off late, world markets have been supported by the shrinking LME inventories, which are currently at their lowest level since November 2008. The red metal, which hit its three-week high last week, eased today as Spanish economy contracted 0.3% in the first quarter of 2012- the second straight quarter of economic decline and entered into a recession. Expected resistance and support level for today trade are as follows:

TREND BULLISH

SUPPORT 1: 444.55

SUPPORT 2: 441.35

RESISTANCE 1: 430.75

RESISTANCE 2: 433.85

CRUDE OIL (MAY) – International oil price politics have returned to the frontage, including obvious pressure from consuming governments for policy actions to dampen the oil market. Among the most prominent of those caught in the middle of this renewed flaring of oil price politics is of course Saudi Arabia. Expected resistance and support levels for the crude may contract with expiry date of 19 MAY 2012 are:

TREND BULLISH

SUPPORT 1: 5505

SUPPORT 2: 5415

RESISTANCE 1: 5695

RESISTANCE 2: 5785

GOLD (JUNE) – COMEX Gold remained in a thin range today after hitting two-week highs in the last session as a jump in the US dollar following Spanish economic fears and the euro zone's inflation data capped the upside for the metal. The commodity rose well above $1660 per ounce in the last session, adding to prior gains on follow up buying and ideas that global central bankers would continue to execute money printing operations and debase their currencies. The local MCX Gold futures for June delivery are quoting at Rs. 29161, up Rs. 52 per kg on the day. The counter had edged up towards Rs. 29200 in intraday moves but failed to break above the same. Resistance and support levels for the today’s session for Gold June contract which will expire on June 2012 are:

 

TREND BULLISH

SUPPORT 1: 29015

SUPPORT 2: 28925

RESISTANCE 1: 29225

RESISTANCE 2: 29335

SILVER (MAY) – Investors are losing their interest in gold and are putting their money in silver, latest data released by the London Bullion Market Association (LBMA) shows. LBMA represents the wholesale over-the-counter market for gold and silver in London. Silver’s Expected resistance and support levels for today trade are as follows:

TREND CONSOLIDATE

SUPPORT 1: 55205

SUPPORT 2: 55095

RESISTANCE 1: 55465

RESISTANCE 2: 55595

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Market Overview

A Mid-week break has brought in renewed energy and inspiration. A positive opening is on the cards, spurred by the overnight rally in the overseas markets. The Dow Jones Industrial Average closed at the highest level since Dec. 2007 on the back of strong manufacturing PMI data. European markets open for trading finished higher with the UK’s FTSE 100 pacing the gains.

Bharti Airtel and Hero MotoCorp will announce their Q4 numbers today.

Samvardhana Motherson Finance Ltd. IPO opens today as well.

Provisional FII figure for Monday is encouraging but the market will be cautious as the GAAR controversy is yet to be resolved.

Commodity News Bulletin

Gold:

Akshaya Tritiya brought good news to Rajesh Exports Ltd whose retail jewellery sales rose 89% on a year-on-year basis on Akshaya Tritiya day which fell on April 24. More than 178 kg of jewellery was sold representing a value of Rs 178 cr.

Silver:

Silver, the well known volatile white metal had a delighted performance since the beginning of the year 2012. But after March prices dipped to some amount and remained in tight range of Rs 55000-Rs 59000 in domestic bourses.

Copper:

China to export some copper, with the end result likely to be a collapse in nearby tightness in London Metal Exchange spreads but a tighter Chinese market, said Barclays Capital in a commodity briefing.

Crude Oil:

The brightest spot in all of non-OPEC remains the Americas, which has continued on a strong growth path. While Brazilian output has been affected somewhat by the latest oil spills and Canadian production by the shortfalls discussed above, output from both countries should recover as the year progresses.

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