DAILY METALS & ENERGY REPORT December 31, 2012

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1 FINANCIAL MARKET OVERVIEW Asset Last Chg % Chg Commodity Gold / US Dollar FX Spot % Silver / US Dollar FX Spot % Crude oil $ Spot % COMEX Copper $ % CRB Index % Equity BSE Sensex Index % S&P CNX NIFTY % Hang Seng Index % Shanghai SE Composite Index % Nikkei 225 Index % DAX Index % CAC 40 Index % Dow Jones Industrial Average Index % NASDAQ 100 Index % Sao Paulo SE Bovespa Index % Forex US Dollar / Indian Rupee FX Spot Rate % ICE Dollar Index % Euro / US Dollar FX Spot % US Dollar / Japanese Yen FX Spot Rate % UK Pound Sterling / US Dollar FX Spot Rate % Data s are as per previous day's close Data sources can & do produce bad ticks. Verify before use. GLOBAL UPDATE Commodities ended broadly lower in nervous trading on Friday as traders and investors followed last-ditch attempts by U.S. politicians to resolve a fiscal crisis before the yearend. The dollar rose, U.S. Treasury yields hit two-week lows and stocks on Wall Street fell for a fifth straight day as the president and his political rivals sought to avoid $600 billion in tax increases and spending cuts that take effect on Jan. 1. Fourteen of the 19 markets on the Thomson Reuters-Jefferies CRB index settled in negative territory -- pushing the broad commodities gauge down half a percent on the day, although it rose slightly on the week due to modest gains in recent sessions. Market Focus US budget talks will be the main focus as many economists have warned that failure to reach a deal will tip the U.S. economy over a "fiscal cliff" and into possible recession.

2 PRECIOUS METALS Commodity Exchange Expiry Open High Low Close Net Chg % Chg Gold MCX Feb % Gold $ COMEX Feb $1, $1, $1, $1, % Silver MCX Mar % Silver $ COMEX Mar $30.17 $30.37 $29.91 $ % Data s are as per previous day's close Commodity Unit Last % Chg Gold Spot $/Oz $1, % Gold Spot-Mumbai Rs/10gms % Silver Spot $/Oz $ % Silver Spot Mumbai Rs/Kg % Commodity Unit AM Fix PM Fix London Gold Spot $/Oz $1, $1, London Silver Spot $/Oz - $ Gold-Silver ($) Spot Gold fell on Friday, wiping out what would have been its first weekly gain since November, as traders priced the market lower while awaiting the outcome of lastditch U.S. budget talks ahead of a year-end deadline. Most markets were on tenterhooks as President Barack Obama met with congressional leaders from the Democratic and Republican parties at the White House to restart stalled talks on the budget. Spot gold and futures showed a modest loss on the week after Friday's decline wiped out gains built from Monday through Thursday. In Friday's session, volume in gold futures was around 60 percent below the 30-day average, making it one of the least traded markets on the 19-commodity Thomson Reuters-Jefferies CRB index. Outlook $ Spot gold is not able to sustain above the $1660/Oz resistance of 200 DMA. Until that holds the bias for gold remains downwards and might once again fall till $1640/Oz. On MCX looks likely in February futures contract.

3 ENERGY Commodity Exchange Expiry Open High Low Close Net Chg % Chg Crude oil MCX Jan % Crude oil $ NYMEX Feb $91.15 $91.49 $90.32 $ % Natural gas MCX Jan % Natural gas $ NYMEX Feb $3.41 $3.49 $3.36 $ % Data s are as per previous day's close Commodity Unit Last % Chg WTI Spot $/bbl $ % Brent Spot $/bbl $ % Brent-WTI ($) Spread Spot Gold-WTI Crude ($) Spread Oil prices settled lower on Friday after U.S. data showed a sharp rise in gasoline inventories and as investors worried that U.S. budget negotiators may not reach a deal in time to avert a fiscal crisis that could erode oil demand. Weekly data from the U.S. Energy Information Administration showed U.S. gasoline stocks rose by 3.8 million barrels last week, capping a five-week build of nearly 23 million barrels. U.S. crude futures fell 7 cents to settle at $90.80 a barrel. They were up 2.4 percent on the week. Brent crude fell 18 cents to settle at $ a barrel. Trading in crude futures was thin during a holiday season lull, with Brent volumes around 40 percent below 30-day average levels, and U.S. crude volumes down by around half. Outlook MCX Crude oil Jan contract once again failed to close above the strong resistance of 5000.We might see a slight fall in prices till 4930 which should be a good buying level.

4 BASE METALS Commodity Exchange Expiry Open High Low Close Net Chg % Chg Copper MCX Feb % Copper $ COMEX Mar $ $ $ $ % Zinc MCX Dec % Lead MCX Dec % Nickel MCX Dec % Aluminum MCX Dec % Data s are as per previous day's close LME Inventory Commodity Change Copper UP 50 Zinc DOWN 1075 Lead DOWN 4250 Nickel UP 372 Aluminium DOWN MCX Lead Zinc Spread Copper fell slightly on Friday on a stronger dollar and uncertainty over the outcome of a last-chance round of U.S. budget talks, but signs that top consumer China's economy is recovering limited losses. The metal was also supported by reports that workers at the worlds biggest copper mine, Chile's Escondida, had rejected an early pay offer, although current contracts remain in force until June next year. There were signs the economy in China is steadily recovering, with a Reuter s survey showing the country's factory activity this month probably expanded at its fastest pace in eight months. LME Copper fell almost 2 percent last week and is up just 4 percent so far this year, while threemonth zinc has risen 12 percent. Outlook On MCX copper looks to trade in a range of until 444 holds on the upside. On the lower side support is pegged at below which the metal might give a steep fall.

5 WEEKLY ECONOMIC CALENDAR Event Country Date Time Unit Period Poll Prior HSBC Mfg PMI Final China 31-Dec-12 7:15 AM Dec CPI prelim mm Germany 2-Jan-13 5:30 AM % May -0.1 HSBC Markit Mfg PMI India 2-Jan-13 10:30 AM Dec 53.7 Markit/ADACI Mfg PMI Italy 2-Jan-13 2:13 PM Dec Markit Mfg PMI France 2-Jan-13 2:18 PM Dec Markit/BME Mfg PMI Germany 2-Jan-13 2:23 PM Dec Markit Mfg PMI Eurozone 2-Jan-13 2:28 PM Dec Markit Mfg PMI Final US 2-Jan-13 7:28 PM Dec 54.2 Construction spending mm US 2-Jan-13 8:30 PM % Nov ISM Manufacturing PMI US 2-Jan-13 8:30 PM Dec Unemployment rate sa Germany 3-Jan-13 2:25 PM % Dec Retail sales mm real Germany 4-Jan-13 12:30 PM % Nov CPI (EU norm) prelim yy Italy 4-Jan-13 3:30 PM % Dec Non Farm Payrolls US 4-Jan-13 8:30 PM Factory Orders US 4-Jan-13 10:00 PM ISM Non Mfg Index US 4-Jan-13 10:00 PM Source:Reuters

6 WEEKLY TECHNICALS Copper Copper Feb future contract on MCX traded sideways to down for the third straight week and moving ahead some more downside can be seen towards 434 which can be used as good buying opportunity. The RSI is flat but sustaining above the middle line is signifying some strength in prices. First resistance for the red metal is at 444 and sustained close above the same will indicate further positive move for the counter. Strong support for the metal is at and sustained close below the same will signify reversal in trend for near term. Conclusion: Dip towards 434 can be used as good buying opportunity with a profit objective of 442. But all long positions should be exited if it closes below

7 SWING LEVELS Commodity Exchange Expiry Close Trend** S3 S2 S1 Pivot R1 R2 R3 PRECIOUS METALS Gold MCX Feb Gold M MCX Jan Gold $ COMEX Feb Silver MCX Mar Silver $ COMEX Mar Silver M MCX Feb ENERGIES Crude oil MCX Jan Crude oil $ NYMEX Feb Natural gas MCX Jan Natural gas $ NYMEX Feb BASE METALS Copper MCX Feb Copper $ COMEX Mar Zinc MCX Dec Lead MCX Dec Nickel MCX Dec Aluminum MCX Dec Data s are as per previous session's close Data sources can & do produce bad ticks. Verify before use. ** Trend is just a market indicator as per the previous close and is not an indication to buy or sell. Disclaimer This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Motilal Oswal Commodities Broker Private Limited (hereinafter referred as MOCBPL) is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. The report is based upon information from publicly available data or other sources believed to be reliable, but we do not represent that it is accurate or complete, and it should not be relied upon such. MOCBPL or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. MOCBPL or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations. MOCBPL and/or its Group Companies, their Directors, affiliates and/or employees may have interests/ positions, financial or otherwise in the Securities/Commodities and other investment products mentioned in this report. This information is subject to change without any prior notice. MOCBPL reserves the right to make modifications and alternations to this statement as may be required from time to time.