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

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