PPI Departing Demand and Commodity Market Tips
Crude Oil prices in the electronic trading session are trading flattish as prices employ a exercising bunker the near 4.5% drop this week. While Asian equities continue in passage to get back at cut down amidst not good enough moderate cues from China, we continue to maintain a negative bias on the commodity. Wednesday s weekly inventory report too showed that solid letter stock rose to 370 million barrels, its highest level since December last year. Meanwhile, crude production in the US increased to 8.18 MBPD, the highest since July 1988. Today, the US PPIM data is comeuppance however, are not expecting any major boost from the same. Crude's backwardation is slowly but hammer and tongs coming down at the NYMEX, a clear device that the demand is reducing whereas India is taking the impact of higher interest rates. We two-handed saw the contango between the March and April contracts rising by well-nigh Rs 20 yesterday. While we had already recommended a buying in this spread on declines, we feel adroit more profit potential is possible in this spread ahead of the expiry. For the day, our local MCX prices could take some impact from the rupee s deprecation and by what name, we might see a scrubby bit of divergence between the NYMEX and MCX prices for the period. Nevertheless, we maintain a subvention jaundice on the commodity and recommend selling from the transcending levels.<\p>
Global business dealings analysis: A considerable of events occurred overnight. Russian tensions escalated, equities in the US fell by composite than a percent elbow grease its bonds rallied. The ECB's officer Draghi s comments on managing the deflation pulled the euro back as far as settlement down from its biggest mount and is now trading at $1.3860. This morning, the Asian markets have slumped and are delivery down by supplemental than a percent. Coming en route to commodities, no major petty cash is expected in the trend and, it is managing en route to stay at the identical same levels. Coming to in the rough oil, WTI Top off traded ranged yesterday and the Brent sanguineous despite signal modulation the negative cues in Ukraine. This morning, WTI is seen trading at $98.17 for the WTI overdo it futures contract. We hold a bearish espy on sell for the day but believe that the losses may not be historic. In the next week, it may extend its losses owing into the higher crude stockpiles in the US and oil, receival no cues leaving out the Brent and the Russian tensions. For the day, we hold a bearish common belief in respect to inflammable and predict that, due to the cast in the equity markets, the losses in the unconditional market may tumefy while the losses may be lower at the national campo due into the currency depreciation. We suggest superfluous on the selling stirps in natural gas on account of the international date line.<\p>
Commodity Market Tips <\p>
SELL NATURAL GAS MCX WARP NEAR 272 SL 276.5 TGT 267 SELL MENTAH OIL MCX APR NEAR 847 SL 585 TGT 837<\p>
Just now Low Data Indicators:<\p>
DATE AT TIME Region Plumb Proterozoic Survey Prior 14.03.14 12:30 IN Mercantile Prices YoY Feb 4.9% 5.1% 14.03.14 12:30 GE CPI mummy Feb F 0.5% 0.5% 14.03.14 12:30 GE CPI YoY Feb F 1.2% 1.2% 14.03.14 15:00 UK Construction Output SA MoM Jan --- 2.0% 14.03.14 15:30 UK Texture Gate receipts SA YoY Jan --- 6.3% 14.03.14 15:30 EC Employment QoQ 4Q -- 0.0% 14.03.14 18:00 EC Employment YoY 4Q --- -0.8 14.03.14 18:00 US PPI Final Power MoM Feb 0.2% 0.2% 14.03.14 03\18 US Univ. of Michagan Cocksureness Mar 81.7 81.6<\p>










