Daily Market Update Report as on Thursday, October 25, 2018

Transcription

1 Daily Market Update Report as on Thursday, October 25, 2018 Gold fell on Wednesday, pressured as a rising dollar spurred investors to take profits after tumbling stocks ushered the metal to a more than three-month peak in the previous session. The dollar index hit its highest since Aug. 17 against a basket of currencies, potentially weighing on demand by making the bullion more expensive for holders of other currencies. U.S equities were in the red, falling into a mostly negative trend in world stocks, which have dropped for five straight days, pressured by earnings disappointment, concerns over Italy's budget and worries that world economic growth is losing steam. Dhanteras: BSE, NSE to extend trade in gold ETFs, sovereign bonds - Top stock exchanges NSE and BSE have decided to extend the trading session for gold exchange traded funds (ETFs) and sovereign gold bonds (SGB) on November 5, till 7 pm on the occasion of Dhanteras, a festival celebrated two days before Diwali. Gold ETFs track the metals prices and each unit of these securities is generally equivalent to one gram of gold, while SGB are government securities denominated in grams of gold and offer an alternative to holding gold in physical form. Slide in the rupee and the current volatility in the economy has not dampened the purchase of gold on Dussehra, market sources say - Slide in the rupee and the current volatility in the economy has not dampened the purchase of gold on Dussehra, market sources say. Gold continues to be a safe haven for investors, especially when they are rapidly withdrawing money from equity, bonds and Non Banking Finance Companies, Surendra Mehta, national secretary of IBJA told DNA. This is due to depreciation of rupee and states affected by natural calamities. In Mumbai and Mumbai Metropolitan Region, city jewellers have estimated at least 15 per cent rise in the buying of the shiny metal against 30 per cent fall last year. India offloading US Treasuries to support national currency & buy gold - The Reserve Bank of India (RBI) is cutting down on its holding of US Treasuries, joining a number of countries which have been dumping US debt to bolster domestic economies. The country s share of US sovereign debt saw a gradual decline from $157 billion in March to $140 billion as of the end of August, according to the latest US Treasury report. RBI needed US dollars to sell in the market to stop the steep slide of its currency, the rupee. The bank has sold foreign currencies worth $18.6 billion in the spot market since April to rein the value of the rupee. Silver Speculators Cut Back On Their Bearish Bets Again This Week - Large precious metals speculators reduced their bearish net positions in the Silver futures markets this week, according to the latest COT data released by the CFTC on Friday. The non-commercial futures contracts of Silver futures, traded by large speculators and hedge funds, totaled a net position of -14,827 contracts in the data reported through Tuesday October 16th. This was a weekly advance of 7,423 contracts from the previous week which had a total of -22,250 net contracts. The silver bearish position has now declined for the fifth time out of the past six weeks. The current standing (-14,827 contracts) has now fallen below the -20,000 contract level after having been above that level for five out of the previous six weeks. Date Gold* Silver* 24 Oct 2018 (Wednesday) Oct 2018 (Tuesday) Oct 2018 (Monday) The above rate are IBJA PM rates * Rates are exclusive of GST 24 Oct 2018 (Wednesday) Page 1

2 Outlook: Gold looks to trade with positive node as the U.S. dollar eased and Asian stocks slumped after Wall Street surrendered all its gains for the year. For the day prices a drop towards will look to buy with a stoploss of below expecting prices to jump towards level. MCX GOLD Market View Daily Levels Open High Low Close Value Change % Change Margin Margin (Rs.) Volume Open Interest Cng in OI (%) Prev Value(Mln) 52 Week High 52 Week Low Resistance Support Spread FEB - DEC APR - FEB Gold on MCX settled down -0.47% at as a rising dollar spurred investors to take profits after tumbling stocks pushed the metal higher in the previous session. The dollar index hit its highest since Aug. 17 against a basket of currencies, potentially weighing on demand by making the bullion more expensive for holders of other currencies. U.S equities were in the red, falling into a mostly negative trend in world stocks, which have dropped for five straight days, pressured by earnings disappointment, concerns over Italy's budget and worries that world economic growth is losing steam. Sales of new U.S. single-family homes fell to a near two-year low in September and data for the prior three months was revised lower, the latest indications that rising mortgage rates and higher prices were sapping demand for housing. The U.S. Federal Reserve should continue raising interest rates at least two but probably three more times before assessing whether further rate hikes to restrain growth are warranted, Dallas Federal Reserve Bank President Robert Kaplan said on Wednesday. President Vladimir Putin said that Russia would be forced to target any European countries that agreed to host U.S. nuclear missiles following Washington s withdrawal from a landmark Cold war-era arms control treaty. An uncompromising challenge to EU budget rules by Italy is providing the first big test for reforms introduced to save the euro zone nine years ago. Holdings in SPDR Gold Trust, the world s largest gold-backed exchange-traded fund, rose 0.24 percent to tonnes on Wednesday. Technically now Gold is getting support at and below same could see a test of level, And resistance is now likely to be seen at 32033, a move above could see prices testing Page 2

3 INT. GOLD$ Market View Daily Levels Open High Low Close Value Change % Change Resistance Support Outlook: Gold price keeps its stability above the bullish pennant s resistance, while stochastic begins to provide positive overlapping signal on the four hours time frame, to continue suggesting the bullish trend that conditions holding above level, while its targets begin by breaching level to confirm extending the bullish wave towards Gold settled down as a rising dollar spurred investors to take profits after tumbling stocks pushed the metal higher in the previous session. The dollar index hit its highest since Aug. 17 against a basket of currencies, potentially weighing on demand by making the bullion more expensive for holders of other currencies. U.S equities were in the red, falling into a mostly negative trend in world stocks, which have dropped for five straight days, pressured by earnings disappointment, concerns over Italy's budget and worries that world economic growth is losing steam. Sales of new U.S. single-family homes fell to a near two-year low in September and data for the prior three months was revised lower, the latest indications that rising mortgage rates and higher prices were sapping demand for housing. The U.S. Federal Reserve should continue raising interest rates at least two but probably three more times before assessing whether further rate hikes to restrain growth are warranted, Dallas Federal Reserve Bank President Robert Kaplan said on Wednesday. President Vladimir Putin said that Russia would be forced to target any European countries that agreed to host U.S. nuclear missiles following Washington s withdrawal from a landmark Cold war-era arms control treaty. An uncompromising challenge to EU budget rules by Italy is providing the first big test for reforms introduced to save the euro zone nine years ago. Holdings in SPDR Gold Trust, the world s largest gold-backed exchange-traded fund, rose 0.24 percent to tonnes on Wednesday. Technically now Gold is getting support at and below same could see a test of level, And resistance is now likely to be seen at , a move above could see prices testing Page 3

4 Rupee strengthened by 41 paise to close at over three-week high of against the US currency on easing crude oil prices and a bullish trend in the domestic equity market. Lower crude prices eased concerns over forex outflows and aided dollar selling by exporters. The greenback s weakness against some currencies overseas also fuelled the rupee uptrend. Technically market is getting support at and below same could see a test of level, And resistance is now likely to be seen at 73.29, a move above could see prices testing USDINR Market View Daily Levels Open High Low Close Value Change % Change Margin Margin (Rs.) Volume Open Interest Cng in OI (%) Prev Value(Mln) 52 Week High 52 Week Low Resistance Support Spread NOV - OCT DEC - NOV Rupee strengthened to a three-week high aided by a sharp fall in global crude oil prices overnight, while expected gains in local shares also helped sentiment. The partially convertible rupee was trading at 73.22/23 per dollar, compared with its previous close of and after earlier touching in opening deals, its highest since Oct. 3. The Reserve Bank of India appears to have moved away from its hands-off exchange rate strategy as the rupee plumbed fresh lows earlier this month. The country s foreign-exchange reserves plunged $5.14 billion in the week ended Oct. 12, the biggest drop in seven years, hinting the central bank intervened to stem the rupee s losses from getting out of hand after it held interest rates at an Oct. 5 meeting. The Reserve Bank of India s monetary policy committee sees a risk of rising headline inflation from high crude oil prices and a weak rupee, indicating potential rate hikes ahead even as it held rates unchanged at its last meeting. Minutes of RBI s monetary policy committee s (MPC) October meeting, released on Friday, showed most committee members highlighted the upside risks to inflation while preferring to wait for greater clarity on price pressures. The panel also shifted its policy stance to calibrated tightening from neutral. Given the flexible inflationtargeting mandate of the MPC, it seems important to signal commitment to keeping to the mandate and move forward carefully at an appropriate time. Technically now USDINR is getting support at and below same could see a test of level, And resistance is now likely to be seen at , a move above could see prices testing Page 4

5 Gold Spot 995 Gold Spot 999 Exch. Descr. Last* Exch. Descr. Last* CMDTY Gold Ahmedabad CMDTY Gold Ahmedabad CMDTY Gold Bangalore CMDTY Gold Bangalore CMDTY Gold Chennai CMDTY Gold Chennai CMDTY Gold Cochin CMDTY Gold Cochin CMDTY Gold Delhi CMDTY Gold Delhi CMDTY Gold Hyderabad CMDTY Gold Hyderabad CMDTY Gold Jaipur CMDTY Gold Jaipur CMDTY Gold Kolkata CMDTY Gold Mumbai CMDTY Gold Mumbai * Rates including GST * Rates including GST Silver Spot 999 Bullion Futures on MCX Exch. Descr. Last* Exch. Descr. Last CMDTY Silver Ahmedabad MCX GOLD 04AUG CMDTY Silver Bangalore MCX GOLD 05OCT CMDTY Silver Chennai MCX GOLD 05DEC CMDTY Silver Delhi MCX SILVER 05JUL CMDTY Silver Hyderabad MCX SILVER 05SEP CMDTY Silver Jaipur MCX SILVER 05DEC CMDTY Silver Kolkata CMDTY Silver Mumbai * Rates including GST Bullion Futures on DGCX Gold and Silver Fix Exch. Descr. Last Exch. Descr. Last DGCX GOLD 28NOV CMDTY Gold London AM FIX DGCX GOLD 29JAN CMDTY Gold London PM FIX DGCX GOLD QUANTO 29NOV CMDTY Silver London FIX DGCX GOLD QUANTO 30JAN DGCX SILVER 28NOV Gold / Silver Ratio DGCX SILVER 26FEB Exch. Descr. Last DGCX SILVER QUANTO 29NOV INTL. SPOT GOLD SILVER RATIO MCX MCX GOLD SILVER RATIO Page 5

6 Report is prepared for information purposes only. Kedia Stocks & Commodities Research Pvt Ltd. Mumbai. INDIA. Mobile: / info@kediacommodity.com URL: General Disclaimers: This Report is prepared and distributed by Kedia Stocks & Commodities Research Pvt Ltd. for information purposes only. The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale through KSCRPL nor any solicitation or offering of any investment /trading opportuni. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients of this Report should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. This Report has been prepared on the basis of publicly available information, internally developed data and other sources believed by KSCRPL to be reliable. IBJA and KSCRPL or its directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information / opinions / views. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of IBJA and KSCRPL shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information / opinions / views contained in this Report. The possession, circulation and/or distribution of this Report may be restricted or regulated in certain jurisdictions by appropriate laws. No action has been or will be taken by KSCRPL in any jurisdiction (other than India), where any action for such purpose(s) is required. Accordingly, this Report shall not be possessed, circulated and/ or distributed in any such country or jurisdiction unless such action is in compliance with all applicable laws and regulations of such country or jurisdiction. KSCRPL requires such recipient to inform himself about and to observe any restrictions at his own expense, without any liability to KSCRPL. Any dispute arising out of this Report shall be subject to the exclusive jurisdiction of the Courts in India. Page 6