Commodity Fundamental Report 22-09-2010

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Daily Market Update

GOLD

SILVER

PRECIOUS METALS

MAJOR HIGHLIGHTS

• Gold rallies to fourth successive record high after Fed

• Fed says ready to act, if needed, to step up inflation

MARKET RECAP

Spot gold edged up 0.2 percent to $1,288.35 an ounce by 0

GMT, after touching a new record of $1,290.70 on Tuesday. gold futures for December delivery rose 1 percent to $1,288.6.

The U.S. Federal Reserve said it stood ready to provide m

support for the economy and expressed stronger concerns alow inflation, although it made no policy shift at the end of the oday meeting.

The weakness in the dollar has helped support bullion. The d

fell to a 6-week low against a basket of currencies, after the meeting intensified speculation it would take more measurebolster the economy.

Bank of Japan Governor Masaaki Shirakawa said the central b

will continue to provide ample liquidity to markets, including fusupplied through currency intervention.

OUTLOOK

Reaching $1,300 is just a matter of time. The most impor

factors are zero interest rates and that the world economy outAsia still seems unstable

DATA/EVENTS

The following data is expected on Wednesday:

1100 U.S. Morgage Index Weekly

1400 U.S. FHFA Home price JulyMCX SUPPORT RESISTANCE

GoldRs. 19100 Rs. 19200

Rs. 19000 Rs. 19300

SilverRs. 31800 Rs. 32200

Rs. 31600 Rs 32500

Fundamental Report

Sep 22, 2010Be Wealthy Be Wise

NYMAX SUPPORT RESISTANCE

Gold$ 1290 $ 1295

$ 1285 $ 1300

Silver$ 19.80 $ 20.95

$ 20.70 $ 21.20



MCX SUPPORT RESISTANCE

CopperRs. 355 Rs. 360

Rs. 350 Rs. 365

Copper

Zinc

BASE METALS

MARKET RECAP

Copper prices fell for the second straight day on speculation an uneven U.S. economic recovery will erode demand for

industrial metal.

The Federal Reserve is expected to keep borrowing costs at relows to bolster the economy as home sales remain slack. Cop

inventories monitored by the Shanghai Futures Exchange fethe lowest level in 11 months. Before today, prices rosepercent in the past year as manufacturing increased in China,

world’s biggest metal user.

Copper futures for December delivery fell 2.35 cents, or percent, to settle at $3.481 a pound at 1:24 p.m. on the Co

in New York. The metal has gained 4 percent this year.

Inventories fell 3.9 percent to 94,365 tons, the Shan

exchange said today. That’s the lowest level since the week en

Oct. 9, 2009. Financial markets in China are closed fyesterday to Sept. 24 for the Mid-Autumn Festival.

OUTLOOK

Copper is at a technical point where it’s looking for direction

Chinese will provide long- term support for the market continued drawdowns in above- ground stock. But absent

economic stimulus in the U.S., copper is susceptible to a down

correction.

The data suggest that the U.S. housing sector is slowly puitself off the canvas after a knockout punch. Construcaccounts for a quarter of demand for copper, used in wiring

plumbing, according to the Copper Development Association.


ZincRs. 88.00 Rs. 92.00

Rs. 80.00 Rs. 105.00



ENERGY

MAJOR HIGHLIGHTS

• U.S. crude, gasoline stockpiles unexpectedly rise - API

• Technicals show prices to rise towards $76

• Coming Up: U.S. EIA oil inventories; 1430 GMT

MARKET RECAP

Crude oil prices fell for the fifth time in six days on Tues

wilting amid high oil inventories and the Federal Resercontinued concern about sluggish economic recovery.

Crude futures extended losses right before the close of the

open outcry trading session in New York after the U.S. FedReserve said it would keep interest rates exceptionally low that the central bank was prepared to provide additiaccommodation if needed to support recovery.

The October U.S. crude contract expired on Tuesday, hel

keep pressure on the front month and nearby months, indusources said.

U.S. crude for October delivery fell $1.34, or 1.79 percentsettle at $73.52 a barrel as it expired and went off the boTrading ranged from $72.81 to $74.60.

U.S. November crude fell $1.22, or 1.6 percent, to settl

$74.97 a barrel.ICE Brent for November fell 90 cents to sett$78.42.

OUTLOOK

There was pressure on the (U.S.) October contract intoexpiry as people realized that we have a glut of supply. T

pressed the market down.

An analyst survey ahead of the API report had yielded a forefor crude inventories to be down 1.9 million barrels last wbecause of lower imports from Canada due to the Enbr

pipeline outage and as tankers navigated around stoweather.

rude oil

Natural Gas


Natural GasRs. 225 Rs. 235

Rs. 205 Rs. 245


Crude oil

Rs. 72.00 Rs. 75.00

Rs. 70.00 Rs. 78.00



Rahul Bhandawat

Manager-Equity Research

Focus Shares & Securities Pvt. Ltd

[email protected]

PP: Pivot Point: This is trigger point for Intra Day buy/sell based on the price range of the previous day. R

Resistance one: 1st Resistance over PP. R2: Resistance two: 2nd Resistance over R1. S1: Support one: 1upport after PP. S2: Support Two: 2nd support after S1. S3: Support Three: 3rd support after S2.

As per the tool, the trader should take BUY position just above PP and keep the stop loss of PP and the firarget would be R1. If R1 is crossed then R2 becomes the next target with the stop loss at R1. Than if R2

rossed then R3 becomes the next target with the stop loss at R2.

Similarly if price goes below PP, the trader should SELL and keep the PP as Stop loss and the first target woube S1. If S1 is crossed then S2 becomes the next target with the stop loss at S1. After that if S2 is crossed th

S3 becomes the next target with the stop loss at S2. This is an intra-day tool. The key to use of this tool is th

use of suggested STOP LOSS.

• A Trader not observing STOP LOSS cannot survive for long.• Don’t try to anticipate the change in main trend, so don’t go against trend.• Technical Calls recommended in this report is valid for Intraday only.

• Never re-schedule your stop loss, square up first and then take a fresh view.

• Book small losses by buying / selling near support / resistance, and look for big Gains, this w

maximize the gains.

• Short-term trading on the basis of technical is a high risk and skill oriented venture and may resu

in huge losses also. Traders doing so are doing at their own risk. We are not responsible for an

damages.

• Mostly it is not advisable to buy/sell a stock if it touches the target price first and then comwithin recommended range of buy/sell.

• Never wait for actual target to be reached book profits slightly before target price, if prices shosluggishness. Always follow stop losses to avoid larger losses.

Pivot Point: An Intra- Day trading tool.

Trading Laws:

Warnings:

Prepared By:

unil Rokade

ommodity Research Analystocus Shares & Securities Pvt. [email protected]

DISCLAIMER

This document has been prepared by the Research Division of Focus Shares & Securities Pvt. Ltd. Mumbai, and meant for use by recipient only as information and is not for circulation. This document is not to be reported or copied or made available to othwithout prior permission of Focus Shares & Securities Pvt. Ltd. It should not be considered or taken as an offer to sell or a solicitationbuy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliabHowever, Focus Shares & Securities Pvt. Ltd. has not independently verified the accuracy or completeness of the same. Neither FoShares & Securities Pvt. Ltd. nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this repshould be aware that past performance is not necessarily a guide to future performance and value of investments can go down as wThe suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advshould be sou ht from an inde endent ex ert advisor.

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Commodity Fundamental Report 22-09-2010