Natural rubber prices flare up to record ₹158/kg

Exhibiting an upward trend in the last few days, natural rubber (NR) prices hit a record ₹158 per kg for RSS-IV grade in the Kerala spot markets on Monday.

This would be the highest spot price of RSS-IV rubber (ribbed, smoked sheet), the most-traded variety, since January 2014.

Though the quoted price of ₹158 is the official figure released by the Rubber Board, sources in the trade told BusinessLine that non-tyre companies have started procuring the commodity even at ₹160 per kg and there were transactions even at ₹163-165 to meet the delivery contract for futures trade, which put the prices at ₹180 for April futures. Rubber Board officials attributed heavy rains in North Thailand (a key growing area) since November, speculative buying, rise in oil prices, increase in buying of vehicles in China, etc as the reasons for the sudden spurt in prices.

Farmers unhappy

However, the jump in prices has not brought any cheer to the farming community, as the rubber sector is at the fag end of the season, with summer set to start.

Following a supply crunch, farmers are unwilling to sell at the current level, anticipating a further rally in prices.

Normally, tapping for the new yield begins at the end of May after a two-month off-season period. However, this year, it will depend on the extended drought looming over Kerala, per the weather forecast, the sources added.

Tyre sector buying

According to George Valy, President of the Kottayam Rubber Dealers Association, tyre companies are aggressively procuring from the domestic market as the import cost of natural rubber is currently on the higher side.

However, the tyre industry has given its thumbs down to the price rally, saying that the rise in NR prices will impact the industry adversely.

Rajiv Budhraja, Director-General, Automotive Tyre Manufacturers Association (ATMA), said the industry is passing through a difficult phase since top-line growth has slowed.

With the increase in raw material cost, even the bottomline will be under tremendous pressure as NR is the prime raw-material for the tyre industry.

PC Cyriac, President, Indian Farmers Movement (Infam), said that rubber prices have so far not come to the international price level and Indian growers should be given the benefit of international prices for their produce.

This has not happened so far, he said and alleged that the tyre companies are suppressing prices. Today, the import price of rubber is ₹240 per kg, forcing companies to depend on domestic procurement to meet their production requirements.

Our Kottayam Correspondent adds: Spot rubber continued to explore further highs on Monday. RSS-4 improved to ₹160 (156) a kg, according to traders. The grade firmed up to ₹158 (156) and ₹155 (153) a kg respectively, according to the Rubber Board and the dealers.

February futures declined to ₹154.90 (159.17), March to ₹162 (166.34), and April to ₹169.47 (173.66) on the National Multi Commodity Exchange.

RSS-3 flared up at its February futures to ¥379 (₹224.72) per kg on the Tokyo Commodity Exchange.

Spot rubber rates (₹/kg): RSS-4: 160 (156); RSS-5: 152 (148); Ungraded: 130 (127); ISNR 20: 150 (148) and Latex (60% dry rubber content): 100 (97).

More will update soon!!

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Important results

Important results (F&O stocks)

Bajaj-auto

Cadila 

Centurytex

Dabur

Icicibank

Idfc 

IOC 

Indigo

Jswsteel 

Kscl 

Ongc 

Oil

Srtransfin

Syndibank

More will update soon!!

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Update on Nifty levels, Bank Nifty levels and Equity Pick of the day 31th January 2017

Nifty 8632/Sensex 27849/ Bank Nifty 19585

18 Advances / 33 Declines/ 0 Unchanged

Indian frontline indices end a lacklustre session with modest cut

Indian equity markets commenced the week on a sluggish note as frontline indices showcased an unenthusiastic performance on Monday and finished the session on a dull note, marginally below the neutral line, as investors at large remained reluctant to build on long positions ahead of government's Budget session, which will start tomorrow with the Economic Survey of India and Annual Budget presentation for financial year 2017-18 by the Finance Minister Arun Jaitley on Wednesday. 

Sentiments remained subdued with Former Finance Minister P Chidambaram’s statement that cash crunch in the wake of demonetisation is still continuing in many places in the country even though it has eased to an extent in the metros. Broader sentiment was also hit by fears about the impact of US President Donald Trump's immigration curbs. Trump on Friday signed an executive order that suspends the arrival of refugees for at least 120 days and bars visas for travellers from seven Muslim majority countries including Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen for the next three months. 

The downside risk for the frontline indices was limited by Union Finance Minister Arun Jaitley’s statement that the implementation of the Goods and Services Tax (GST), along with demonetisation will bring more revenues as far as states and the central government is concerned and enlarges the size as far as the formal economy is concerned. Giving some comfort to investors , the Central Board of Direct Taxes in clarifications on GAAR, said that the adequate procedural safeguards are in place to ensure that General Anti-Avoidance Rules (GAAR), which seeks to prevent companies from routing transactions through other countries to avoid taxes, are invoked in a uniform, fair and rational manner. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs.211.77 crore on January 27, 2017.

On the global front, Asian equity markets ended in red on Monday, as investors digested lacklustre US GDP data and the US immigration ban on seven predominantly Muslim countries. The immigration curbs introduced by US President Donald Trump heightened concerns about the impact of the new administration's policies on trade and the economy. Eyes are now on the Friday release of US jobs data for January, which comes a week after figures showing US growth reached a sluggish 1.9 percent in October-December, well below the 3.5 percent in the third-quarter and below expectations. Meanwhile, European stock markets slid on Monday as traders began the week on a sour note, while Wall Street appeared headed for a weaker opening, with e-mini futures contracts on the S&P 500 stocks index down 0.2 percent.

Back home, after getting a cautious start, the local benchmarks kept losing steam and drifted to the lowest point in the session in mid-morning trades. Thereafter, the indices kept oscillating in a narrow range through the day’s trade.

FII Activity (30th January 2017)

The FIIs as per Monday’s data were net buyers in equity and debt segments both, according to data released by the NSDL.

In equity segment, the gross buying was of Rs 5854.23 crore against gross selling of Rs 5626.91 crore. Thus, FIIs stood as net buyers of Rs 227.32 crore in equities.

In the debt segment, the gross purchase was of Rs 1915.25 crore with gross sales of Rs 1049.91 crore. Thus, FIIs stood as net buyers of Rs 865.34 crore in debt.

Key Results

Akzo Nobel India Ltd

Bajaj Auto Ltd

Bajaj Holdings & Investment Ltd

Bank of Maharashtra

Cadila Healthcare Ltd

Capital First Ltd

Century Plyboards (India) Ltd

Century Textiles & Industries Ltd

Dabur India Ltd

Firstsource Solutions Ltd

GHCL Ltd

HCL Infosystems Ltd

ICICI Bank Ltd

IDFC Ltd

Indian Oil Corporation Ltd

Interglobe Aviation Ltd

Jai Corp Ltd

JSW Steel Ltd

K E C International Ltd

Kansai Nerolac Paints Ltd

Kaveri Seed Company Ltd

Mahindra Holidays & Resorts India Ltd

MphasiS Ltd

Narayana Hrudayalaya Ltd

Navneet Education Ltd

Oil & Natural Gas Corpn Ltd

Oil India Ltd

Shoppers Stop Ltd

Shriram Transport Finance Company Ltd

Syndicate Bank

TTK Prestige Ltd

UCO Bank

WABCO India Ltd

Welspun India Ltd

Wonderla Holidays Ltd

Now what to expect??

Nifty Future Levels 

Support at 8620---8550 and Resistance at 8720—8750

Nifty…if unable to breach its resistance level of 8720—8750 then we can see downside panic till 8620—8550.

Further downside panic will see if closes below 8550

Trade with levels only.

Bank Nifty Future Levels

Bank nifty unable to breach its resistance level of 19800—20400 and slipped.

Now what to expect?

Support at 19400 and resistance at 19800—20400

Break and sustain below 19400 will take it to 19100—18800 else could touch its resistance level of 19800—20400 again.

Trade with levels only.

Today's Top Pick

Amaraja Batteries

Support at 880 and Resistance at 925—930

Amaraja Batteries…Looks positive and could touch its resistance level of 925—930, 

Break and sustain above 930 will take it to 950—970 and then to 1000+ mark in days to come  else could touch its support level of 880.

Looks weak below 880.00

More will update soon!!

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Updates on Bullion, Base Metals and Energy Levels 30th Jan 2017

Gold futures edged higher on MCX as participants enlarged their holdings on the back of a firming trend overseas where gold strengthened as the dollar slipped against a basket of major currencies and sluggish economic data from the United States. Though, Lunar New Year holiday in Asia capped some gains in gold futures..

Crude oil futures traded marginally higher on MCX as investors and speculators extended their positions in the energy commodity as OPEC appears to have persuaded investors that it’s making good on promised output cuts. Further, Saudi Arabia has said more than 80 percent of the targeted decline of 1.8 million barrels has been implemented and oil shipments from OPEC are plunging this month, supported rise in crude prices at futures trade. However, signs of increasing production in the United States capped some gains in crude oil prices. The US weekly oil and gas rig count from Baker Hughes showed that US drillers added 15 oil rigs last week, bringing the total count to 566, the most since November 2015

Copper futures ended higher on Friday on the potential for reduced output from a possible labour strike in Chile and a Freeport-McMoRan, mine in Indonesia. At BHP Billiton-run Escondida in Chile, the worlds biggest copper mine, unionised workers on Tuesday rejected the firm's latest wage offer and asked workers to vote for a strike and prepare for an extended conflict. Meanwhile, Freeport-McMoRan, the world's biggest listed copper miner, warned this week it would need to start slashing output at its Indonesia mine to about 40 percent of capacity if it fails to get a government export permit. However, some gains were capped by stronger dollar, making metals priced in the dollar more expensive for holders of other currencies.

Technical Level

Gold 

Support at 28200---28050 and resistance at 28550.

Looks positive and could touch its resistance level of 28550. Further upside rally will see on close above 28550 else could touch its support level of 28200---28050 again.

Fresh selling can be initiated below 28050

Trade can buy and accumulate Gold in panic around 28200 with stop loss below 28050 on closing basis.

Silver

Silver has support at 41200 and resistance at 42000.

Break and sustain below 41200 will take to 40800---40500 and then to 39700 mark else it could test its resistance level of 42000 again.

Further upside rally will see only close above 42000 mark

Trade with levels only.

Crude oil

Support at 3570 and resistance at 3670—3720

Looks positive and could touch its resistance level of 3670---3720 mark.

Further upside rally will see only close above 3720 else it could touch its support level of 3570 again

Looks weak only close below 3540 mark.

Copper

Support at 398 and resistance at 410

Break and sustain below 398 will take it to 393—389 and then to 383 mark else could touch its resistance level of 410.00

Fresh buying can initiated only close above 410.00

Trade with levels only

More will update soon!!

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बिजनेस न्यूज़ : 7 मुस्लिम देशों के नागरिकों की अमेरिका में रोक से भारत को हो सकता है फायदा, पढ़ें पूरी रिपोर्ट

पिछले हफ्ते अमेरिका के राष्ट्रपति डोनाल्ड ट्रंप ने जिन 7 मुस्लिम देशों के नागरिकों की अमेरिका मे एंट्री पर रोक लगाई है उसको लेकर भले ही दुनियाभर में ट्रंप की आलोचना हो रही हो लेकिन भारतीय कंपनियों के लिए यह रोक एक मौका हो सकती है। जिन देशों पर यह रोक लगाई गई है वह मध्य पूर्व के देश हैं और इनमें से कई देशों में अमेरिका कमोडिटीज और अपनी सेवाओं का बड़ा निर्यातक है।

इन सभी देशों में सबसे अहम ईरान है और ईरान को भारत से भी बड़ी मात्रा में कमोडिटीज का निर्यात होता है। ईरान भारतीय बासमती चावल के साथ सोयामील और चाय का बड़ा खरीदार है। करीब एक साल पहले ही ईरान पर संयुक्त राष्ट्र के आर्थिक प्रतिबंध हटे हैं और इन प्रतिबंधों के हटने के बाद ईरान का बाजार पूरी दुनिया के लिए खुल गया है।

ईरान का बाजार खुलने के बाद भारत से वहां को सोयामील निर्यात में भारी गिरावट आई थी क्योंकि अमेरिका सहित ब्राजील और अर्जेनटीना ने अपना सस्ता ऑयलमील ईरान को भेजना शुरू कर दिया है। लेकिन अब अमेरिका और ईरान के बीच एक बार फिर से तनाव बढ़ गया है, अमेरिका में ईरान के नागरिगों की एंट्री पर रोक के बाद ईरान ने भी अपने यहां अमेरिका के नागरिकों की एंट्री रोक दी है। ऐसे में भारतीय कंपनियों खासकर ऑयलमील कंपनियों निर्यातक के लिए यह एक अच्छा मौका साबित हो सकता है।

देश में सोयाबीन इंडस्ट्री के संगठन सोयाबीन प्रोसेसर्स एसोसिएशन ऑफ इंडिया यानि सोपा के चेयरमैन दविश जैन के मुताबिक अमेरिका में 7 मुस्लिम देशों के नागरिकों की रोक से भारतीय कंपनियों के लिए उन 7 देशों में बाजार मिलेगा, हालांकि दविश जैन ईरान को छोड़ बाकी देशों के बाजार को ज्यादा उत्साहित नहीं है, उनके मुताबिक ईरान को छोड़ बाकी देशों में बाजार तो है लेकिन वहां पर व्यापार इतना आसान नहीं है।

शुक्रवार से ईरान, इराक, लीबिया, यमन, सीरिया, सुडान और सोमालिया के नागरिकों की अमेरिका में एंट्री रोकने की घोषणा कर दी गई है। इसके जवाब में ईरान ने भी अमेरिका पर जैसे को तैसे की तर्ज पर कार्रवाई करते हुए अमेरिकी नागरिकों की अपने यहां एंट्री रोकने को कहा है। ईरान के बाद बाकी के 6 देश भी इस दिशा में आगे बढ़ सकते हैं। ऐसे में भारतीय कारोबारियों के लिए इन देशों में मौका हो सकता है। 

 Source: MarketTimesTv

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Currency Report 30 - January 2017

Currency Report 30 - January 2017

Rupee extends gains for third straight session

Extending gains for the third straight session, Indian rupee ended marginally stronger against dollar on Friday, due to selling of greenback by banks and importers. 

Market participants got some comfort with the report indicating that money in circulation is rising again in India post-demonetisation period and at the current rate, currency-to-GDP ratio will reach about 9 per cent by March -- sufficient to stabilise economic activity. Some support also came with Union Finance Minister Arun Jaitley’s statement that the Indian economy is set to grow at a healthy rate in spite of the global economic slowdown in the coming years, because of important initiatives taken by the present NDA Government that are demonetisation, encouraging free trade and Goods and Services Tax (GST). 

Moreover, firm domestic equity market supported the rupee, but the dollar strengthened against some currencies overseas capped the gains. On the global front, yen came under downside pressure on Friday with Bank of Japan’s (BOJ) decision to increase purchases at regular JGB-buying operation was seen as a message that tapering of the central bank's asset-purchase program is off the table at is policy meeting on Tuesday next week.

Finally, the rupee ended at 68.03, 4 paise stronger from its previous close of 68.07 on Wednesday. The currency touched a high and low of 68.23 and 68.03 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.20 and for Euro stood at 72.74 on January 27, 2017. While the RBI’s reference rate for the Yen stood at 59.24, the reference rate for the Great Britain Pound (GBP) stood at 85.49.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

USDINR

Support at 68.20 and Resistance 68.40

Break and sustain below 68.20 will take it to 68.00---67.90 and then to 67.60 mark else it could touch its resistance level of 68.40 again.

Fresh buying can be initiated above 68.40 only.

GBP-INR

Support at 85.50 and resistance at 86.20

Break and sustain above 86.20 will take it to 86.50--86.80 and then to 86.95+ mark else could touch its support level of 85.50

Looks weak if closes below 85.50

EURINR

Support at 73.10 and resistance at 73.40—73.55

Break and sustain below 73.10 will take it to 72.80—72.55 and then to 72.30 else could touch its resistance level of 73.40—73.55

Fresh buying can be initiated above 73.55

JPYINR

JPY-INR unable to breach its resistance levels of 59.80 and slipped.

Now what to expect??

Support at 59.35 and resistance 59.80

Break and sustain below 59.35 will take it to 59.10—59.00 and then to 58.70 else could touch its resistance level of 59.80

Fresh buying can be initiated above 59.80

More will update soon!!

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