Commodity Tips : MCX Gold price is set to extend its losing spree

gold price today

MCX Gold extended Losses after breaking Rs.30,000. The metal slipped heavily yesterday due to global prices slipped following a rebound in US equities. US stocks rose following the modest pullback in last week. COMEX Gold has tanked all the more today as Asian equities edged up. The metal quotes at USD 1328.30 per ounce, down 0.62 percent on the day. MCX Gold ended down 1.10 % at Rs 29,930 per 10 grams yesterday and this break under Rs 30,000 levels should extend further today.

Meantime, the Indian rupee dropped further Versus the USD in early trades on Tuesday, 12 Sept 2017 as the dollar strengthened overseas. Gains in domestic equity markets capped some of the losses. The rupee opened lower at 63.98 /dollar against last close of 63.93 /dollar.

Agri-commodity Preview: Crude palm oil rises, Mentha falls

Crude oil, mentha oil

On account of in demand at domestic spot market, prices of crude palm oil edged up by 0.42% to Rs 528.80 /10 kg in futures trade Friday. At the MCX, crude palm oil for delivery in October month edged higher by 0.42% to Rs 528.80 /10 kg in business turnover of 38 lots. In the same manner, the oil for delivery in Sept contracts has been trading higher by 0.32 % to Rs 530.20 / 10 kg in 109 lots.

Mentha oil prices softened by 0.21% to Rs 1,218 / kg in futures market today as speculators trimmed their exposure under negative cues from spot market. Moreover, abundant stock positions on higher supplies from producing regions kept the momentum downtrend. At the MCX, mentha oil for delivery in October was trading lower by 0.21% to Rs 1,218 per kg in business turnover of 140 lots. Likewise, the oil for delivery in Sept contracts was down by Rs 2, or 0.17% to Rs 1,203.50 / kg in 442 lots.

04 Sept- Monday Sensex falls over 100 Pts, Apex Frozen lists with 15% premium

best stock tips

The Benchmark indices Sensex & Nifty are trading with weak sentiments showing a negative undertone, despite weak cues from other Asian markets. Following are some major stock in foucs, among many others.

Stocks of Cadila Healthcare Ltd rose 0.85 percent to Rs 512 in the morning hours on BSE after the company announced that it has obtained final approval from the US drug regulator to market a medicine.

SBI proposes to raise up to 3 billion dollar in the country’s biggest overseas green-bond issue for funding projects that will help achieve the govt’s commitments toward growth.
L&T has got approval for expansion of its Information Technology towers project in Mumbai that will bring about an investment of Rs 1102 crore.

Hindalco Industries Ltd set apart 3 billion dollar for overseas acquisitions. The funds will be used to acquire assets in the aluminium space with an aim on increasing focus on the downstream sector.

Metal Mining major Vedanta plans to invest around Rs 50,000 crore on business expansion in India in coming years.

Investors looking on Commodity Future Markets

Indian markets opens new avenues for retail investors and traders to participate in commodity trading. For those who want to diversify their portfolios away from shares, real estate and bonds, commodities is considered the best option.

As per an estimate, 10 percent of retail investors occupied in equity trading have now moved to commodity trading. On account of increase in rate of inflation, there is growing insight among people with regard to the prices of commodities, which has resulted in growing interest of traders and investors towards commodity market.

Following are some parameters for investing or trading in commodity on large level:
Since commodity futures trading are done on margins, the investor deposits a portion of the value of the futures contract with the broker to cover the margin requirements of the exchange. This gives the investor greater leverage whereby the ability to generate higher returns sounds more.

Investments in commodity futures offer high liquidity and it is easy for investors to buy and sell futures and can liquidate their position, if so desire. Further, there is an additional advantage of being able to utilize the profits from a trade to a different place, without having to close the position.

Also commodities markets investments are an exceptional means of portfolio diversification. For instance, the price of gold has historically shown a low correlation with most other asset prices, and thus offers an excellent means for portfolio diversification.

Commodities offers vast potential to become a separate asset class for market-friendly investors, speculators and arbitrageurs. Retail investors, who claim to appreciate the equity markets may find commodities a profound market. Retail investors should recognize the advantages and risks of trading in commodities futures before taking a leap.

The other benefit for commodities traders in India is Risk management. Futures market widely helps in price discovery process and risk management. Exchanges have prudent risk management practices and structured settlement procedures, which restores confidence to an investor. Commodities futures exchanges have an electronic trading platform which helps creating a transparent price detection mechanism driven by market fundamentals and the risk factor without any intervention by sellers or buyers.

The above parameters pronounce fact that commodities have emerged as an alternative investment class and commodity markets across the world are keeping momentum by the latest technological innovations and up-gradations which has made information flow from one market to another very fast.