Daily Report for 1st August 2012

Daily Report

Commodities Market Summary

Gold was locked in a tight range on Wednesday, as investors watched the U.S. Federal Reserve and the European Central Bank, whose monetary policy decisions could determine the direction of markets. If the Fed decided to launch another round of quantitative easing, it would bolster gold's appeal as an inflation hedge, since rampant cash printing could ultimately drive up prices. Although the latest data showed U.S. home prices rose for the fourth month in a row in May, suggesting the recovery in the housing market continued to gain traction. Spot gold was little changed at $1,613.96 an ounce by 0340 GMT, after finishing July up nearly 1 percent -- its second straight month of gains. U.S. gold futures contract for December delivery edged up 0.4 percent to $1,617.40. Spot silver rose to $28.37 in the previous session, its highest in nearly four weeks. The metal with both precious and industrial properties inched up 0.1 percent to $27.95. Oil fell for a third day in New York, the longest losing streak in almost two months, as concern that central banks won’t act to stimulate a slowing global economy outweighed signs of shrinking supplies. Futures slid as much as 0.6 percent after measures of manufacturing in China and Australia weakened. Oil for September delivery decreased as much as 55 cents to $87.51 a barrel in electronic trading on the New York Mercantile Exchange and was at $87.85 at 1:25 p.m. Sydney time. The contract yesterday dropped $1.72 to $88.06, the lowest close since July 13. Prices gained 3.7 percent last month and are 11 percent lower this year. Brent crude for September settlement was at $104.70 a barrel, down 22 cents, on the London-based ICE Futures Europe exchange. The European benchmark’s premium to West Texas Intermediate was at $16.85. It closed at $16.86 yesterday, the widest gap since May.

              

             Levels for the Day

Name	RES2	RES1	S/R	SUP1	SUP2	RECOMMENDATION
ALUMINIUM (31AUG12)	105.15	104.55	103.9	103.3	102.65
COPPER (31AUG12)	426.78	424.67	422.58	420.47	418.38	Buy at 421 SL 418 TGT 425/427
CRUDEOIL (20AUG12)	5069	4995	4951	4877	4833
GOLD (04AUG12)	30009	29879	29800	29670	29591	Buy above 29750 SL 29550 TGT 30050/30150
SILVER (05SEP12)	54470	54222	54071	53823	53672
LEAD (31AUG12)	109.95	109.25	108.25	107.55	106.55
NATURALGAS (28AUG12)	185.65	182.05	179.45	175.85	173.25
NICKEL (31JUL12)	905.35	899.05	893.45	887.15	881.55
ZINC (31JUL12)	104.4	103.8	103.15	102.55	101.9

     Important Events for the Day

1st AUG 2012 (Time – IST) USD ISM Manufacturing (JUL) at 19:30 USD Federal Open Market Committee Rate Decision (AUG 1) at 23:45

Disclaimer This publication has been prepared solely for information purpose and does not constitute a solicitation to any person to buy or sell a security. While the information contained therein has been obtained from sources believed to be reliable, investors are advised to satisfy themselves before making any investments. Paterson Securities P Ltd. has not independently verified all the information given in this document. Accordingly, no representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. Paterson Securities P Ltd. does not bear any responsibility for the authentication of the information contained in the reports and consequently, is not liable for any decisions taken based on the same. Further, Paterson Research Reports only provide information updates and analysis. As per SEBI requirements it is stated that, Paterson Securities P Ltd. and/or individuals thereof may have positions in securities referred herein and may make purchases or sale thereof while this report is in circulation.

 

Daily Report for 31st July 2012

Daily Report Commodities Market Summary Indian inflation is a major challenge for monetary policy even as economic expansion remains weak, the Reserve Bank of India said. Threats to the economy “have been amplified by decelerating global trade and domestic supply constraints,” the central bank said yesterday ahead of its rate decision in Mumbai today. At the same time, “persistent inflation limits the space for monetary policy to revive growth.” The rupee has plunged more than 20 percent against the dollar in the past year as Europe’s debt crisis and India’s trade deficit hurt demand for the currency. It slipped 0.4 percent to 55.585 per dollar at the close in Mumbai yesterday. The BSE India Sensitive Index, down about 6 percent in the past 12 months, climbed 1.8 percent. Gold eased below $1,620 an ounce on Monday, taking its cue from a weaker euro. Spot gold was down 0.3% at $1,618.80 an ounce, while US gold futures for August delivery were down 20 cents an ounce at $1,617.80. Indian gold prices were steady. The most-active gold for August delivery on the MCX was 0.01% lower at Rs 29,792 per 10 gm after trading flat for three sessions in a row. In the rubber market, the most active contract on Tokyo Commodity Exchange January 2013 slid by 2.6% to 232 yen per kg. Traders are still waiting for fresh measures from top producer Thailand to help prevent prices from falling further. Oil headed for its first monthly rise since April in New York before meetings of central bank policy makers to discuss the economy and a report tomorrow that may show U.S. stockpiles declined. Oil for September delivery was at $90.02 a barrel, up 24 cents, in electronic trading on the New York Mercantile Exchange at 1:02 p.m. Sydney time. The contract yesterday dropped 0.4 percent to $89.78, the lowest close since July 26. Prices are up 5.9 percent this month and 9 percent lower this year. Brent crude for September settlement was at $106.31 a barrel, up 11 cents, on the London-based ICE Futures Europe exchange. The European benchmark’s premium to West Texas Intermediate was at $16.30. It closed at $16.42 yesterday, the widest gap in almost 10 weeks.

      

              

             Levels for the Day

Name	RES2	RES1	S/R	SUP1	SUP2	RECOMMENDATION
ALUMINIUM (31AUG12)	103.9	103.55	103.25	102.9	102.6
COPPER (31AUG12)	424.45	422.25	420.75	418.55	417.05
CRUDEOIL (20AUG12)	5050	5014	4992	4956	4934	Buy above 5000 4970 TGT 5045/5050
GOLD (04AUG12)	29849	29818	29789	29758	29729
SILVER (05SEP12)	54392	54109	53617	53334	52842
LEAD (31AUG12)	109.05	108.15	106.95	106.05	104.85
NATURALGAS (28AUG12)	184.3	181	174.9	171.6	165.5
NICKEL (31JUL12)	907.15	900.15	888.35	881.35	869.55
ZINC (31JUL12)	103.45	102.95	102.45	101.95	101.35

     Important Events for the Day

31st July 2012 (Time – IST) CAD Gross Domestic Product (YoY) (MAY) at 18:00 USD Personal Consumption Expenditure Core (YoY) (JUN) at 18:00 USD Consumer Confidence (JUL) at 19:30

Disclaimer This publication has been prepared solely for information purpose and does not constitute a solicitation to any person to buy or sell a security. While the information contained therein has been obtained from sources believed to be reliable, investors are advised to satisfy themselves before making any investments. Paterson Securities P Ltd. has not independently verified all the information given in this document. Accordingly, no representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. Paterson Securities P Ltd. does not bear any responsibility for the authentication of the information contained in the reports and consequently, is not liable for any decisions taken based on the same. Further, Paterson Research Reports only provide information updates and analysis. As per SEBI requirements it is stated that, Paterson Securities P Ltd. and/or individuals thereof may have positions in securities referred herein and may make purchases or sale thereof while this report is in circulation.