Morning News Headlines

Morning News Headlines 

Economic Times

● Railmin to scrap bids for 9500 wagons, water plants 

● RBI imposes restrictions on corporation Bank

● MF industry AUM stands at Rs 22.79 ten in Nov: ICRA

● DTH arm stake sale to help Bharti flight Reliance Jio

● Netflix eyes tie-ups with cable TV operators to expand reach

Business Standard

● Deadline for quoting Aadhaar Pan in financial dealings extended to March 31

● Flipkart completes buyback of ESOPs worth $100 mn

● 40% of all loans will be digital in 2yrs: B Madhivanan

● Unitech shares crash after SC stay order on govt takeover of realty major 

● ADB lowers India's GDP forecast for FY18 to 6.7 percent

Mint

● US Fed goes for 25 bps rate hike in Janet Yellen's last policy meeting

● India's current account deficit widens to 1.2% of GDP in July-September

● RBI imposes Rs 3 Crore penalty on Induslnd Bank 

● MDR rates revised to cut losses of acquirer banks, says RBI deputy governor B.P. Kanugo

● Indian inflation spike hits bonds, spurs rate policy and fiscal worries

Money Control

● India to get $250 mn loan from world Bank for skilling palns 

● Banks yet to pay CITs Rs 25 Crore for note ban period, says Cash Logistics Association

● Retailers say higher MDR nearly doubles merchants' costs 

● GST led to 12% rise in cost of solar projects, says AISIA

● MP approves Rs 7,546 Crore Narmada, Partvati linking project

Sources : Economic Times, Business Standard, Mint & Money Control.

Read More

Current levels of Bullion, Base Metal and Energy for the day 13th December 2017

Update on Bullion, Base Metal and Energy Levels 13th December 2017

Gold futures ended lower on Tuesday, touching five-month low rate as investors muted their trades as they braced for a widely expected US interest rate increase this week and looked for clues about further hikes from the Federal Reserve. The bullion also declined as dollar firmed against basket of major currencies.

Crude oil futures snapped their gaining streak and ended lower on Tuesday, mainly due to profit taking, amid reports offering clarity on the duration of the Forties pipeline shutdown, which forced traders to take profits on Monday’s rally in oil prices. Also, investors continued to fear that the widening Brent-WTI spread would boost demand for US exports, encouraging producers to ramp up output. Meanwhile, the Energy Information Administration (EIA) said it expects US crude production to rise by an average of 800,000 barrels a day next year. The EIA now anticipates U.S. oil prices could average $57 a barrel in 2018, about $2 per barrel higher than its previous forecast.

Copper futures ended marginally lower on Tuesday as the US dollar rose to three-week highs against a basket of currencies as the Federal Reserve begins a two-day policy meeting widely expected to result in a hike in interest rates.      

Technical Level

Gold

Support at 28050, Break and sustain below 28050 will take it to take it to 27850—27600 mark.

Hurdle at 28250. 

 Silver

Support at 36750 and Resistance at 37050

Break and sustain below 36750 will take it to 36300--36000 mark in days to come else could touch its resistance level of 37200 again.

Fresh buying can be initiated above 37050

Crude

Support at 3680 and Resistance 3740

Break and sustain below 3680 will take it to 3630—3600 mark else could touch its resistance level of 3740 mark.

Fresh buying can be initiated below 3740.

Natural Gas

Support at 174.50 and Resistance at 178.00

Break and sustain below 174.50 will take it to 170--168 mark in days to come else could touch its resistance level of 178.00

Fresh selling can be initiated below 174.50.

Copper

Support at 433 and Resistance at 438.00

Break and sustain above 438 will take it to 443--445++ mark else could touch its support level of 433.

Fresh selling can be initiated below 433.00

Economic Data

07:00 P.M CPI m/m: Previous 0.1%, Expected 0.4%, Actual??

Increase in CPI m/m – will have negative impact on bullion and positive impact on dollar Index or vice versa.

07:00 P.M Core CPI m/m: Previous 0.2%, Expected 0.2%, Actual??

Increase in Core CPI m/m – will have negative impact on bullion and positive impact on dollar Index or vice versa.

09.00 P.M Crude Oil Inventories: Previous -3.6M, Expected -5.6M, Actual??

Increase in Crude Oil Inventories – will have negative on crude oil prices or vice versa.

More will update soon!!!

Read More

Technical Pick - Bharat Electronics (BEL)

Technical Pick -  Bharat Electronics (BEL)

BEL  looks weak on charts …Support at 180 and Resistance at 188.

Break and sustain below 180 will take it to 171—168 and then to 160 mark in days to come else could touch its resistance level of 188.

Fresh buying can be initiated above 188 only.

BEL has retraced 61.8% from top of 192.90 currently trading at 182.00 and it can touch 100% --138% and 161% projection levels which stood at 171—168  and 160 respectively.

RSI showing negative divergence on daily chart which indicates upside seems limited in it.

So trade don’t go for aggressive buying at this stage as stock is looking weak and could touch 160 mark in near term.

Trading recommendation (13th Dec 2017) 

Sell BEL below 180 with stop loss above 188 for the initial target of 171--168 and then to 160 mark.

More will update soon

Read More

Copper bears beware as strike risks rise in top producer Chile

Copper bears beware as strike risks rise in top producer Chile

Copper forecasters are reassessing their projections as the top-producing country prepares for its busiest year ever for wage talks. Under a new labour code and with higher prices inflating workers’ pay expectations, Chilean mines will negotiate contracts with 32 unions next year. That represents about three-quarters of the country’s copper output, or about one-fifth of world production. Globally, labour negotiations could trigger disruptions at mines producing about 40 percent of supply. That means any disruptions resulting from strikes could quickly tighten up the market -- as happened this year with stoppages at Escondida in Chile and Grasberg in Indonesia. If that happens then we can see sharp upside in prices in near term.

Source: Investing

More will update soon!!!

Read More

Fresh levels of Major Agri Commodities of 13th December 2017

Agri Commodity Update (13th-Dec-2017) 

Fundamental Aspect:

Soybean futures traded lower for the third consecutive days mainly on renewed selling initiated by the market participants tracking spot prices. However, the trend looks positive due to reports of good physical demand as Soybean Processors Association of India (SOPA) increased its estimates of meal exports for 2017-18. Moreover, earlier government has increased export incentives by 2% for all meals. As per the latest release of SOPA, Soymeal exports from the country in 2017-18 (Oct-Sep) noted a rise of around 20 lakh tn against previous estimate of 15 lakh tn due to a recent rise in export incentives.

USDA Export Inspections report showed 1.230 mt in exports during week of 12/7. That was a drop of 31.78% from the week prior and 33.31% behind this time a year ago. The USDA is expected to increase the 17-18 US ending stocks number for soybeans 15 mbu to 440 mbu.

Chana traded persistently lower due to improved sowing progress coupled with higher stocks in the country due to record imports. As per the latest government data, India imported about 4.78 lakh tonnes of chana during April-Sep, up by 430% compared the last year imports. As per government sowing data, area under the rabi chana crop across the country was up 10.25% on year at 89.6 lakh ha as on last week. 

The National Commodity and Derivatives Exchange have imposed a special margin of 5% on the sell side in all running and yet to be launched chana contracts effective from today as chana is trading below the minimum support price for the third consecutive day .

Technical Aspect (Jan)

Turmeric (Apr)

Support seen at 7250 and Resistance is 7500.

Looks positive and likely to touch 7500.Buy and accumulate more on decline till 7250 and its likely to touch 7500.Break and sustain above 7500 will see more upside in it.

Fresh selling only can be seen only close below 7250 on closing basis.

Trade with levels only.

Jeera  

Support seen at 21200 and Resistance is at 22050.

Buy and accumulate more on decline as it looks positive on chart and likely to touch 22050. Break and sustain above 22050 will take it towards 22450—22700 and then 23200++ mark in near term.

Fresh Selling can be seen on close below 21200 mark on closing basis.

Trade with levels only.

Castor Seed 

Support at 4500 and Resistance at 4620.

Looks positive on chart. Break and sustain above 4620 will take it towards 4680—4750 and then 4850++ mark in near term. 

Fresh selling can be initiated below 4500 mark on closing basis.

Trade with levels only.

Guar seed 

Support is at 3750 and Resistance is 3880.

Panic likely to continue. Break and sustain below 3750 will take it towards 3705—3672 and then 3620 mark in near term else could touch its resistance of 3880 mark.

Hurdle and stop loss will remain at 3880 mark on closing basis.

Trade with levels only.

Chana

Our sell call from 4480—4026 has proven great.

Now what to expect?

Support is 4020 and Resistance is 4150.

We expect sharp recovery from here towards 4150. Break and sustain above 4150 will take it towards 4230—4300 and then 4420++ mark in near term.

Take cautionary approach at lower levels.

Trade with levels only

RM Seed 

Support seen at 3950 and resistance is at 4050.

Looks weak on chart and likely to touch 3950. Break and close below 3950 will take it towards 3880—3830 and then 3750 mark in near term.

Fresh buying can be initiated above 4050 mark on closing basis.

Trade with levels only.

Soybean  

Support seen at 3050 and Resistance is 3165.

If prices unable to break and sustain 3165 then we can expect sharp downside panic in it from higher level till 3050. Break and sustain below 3050 will take it towards 3010—2960 and then 2850 mark in coming days.

Fresh buying can be seen on close above 3165 mark on closing basis.

Trade with levels only.

Soy Refined

Support is 724 and Resistance is 735.

Break and close above 735 will take it towards 739—744 and then 752++ mark in near term.

Fresh selling only can be seen on close below 724 mark on closing basis.

Trade with levels only.

CPO (Dec)

Our buy call from 556—566.90 proven great

Now what to expect?

Support seen at 556 while Resistance is 570.

Looks positive on chart. Buy and accumulate more on decline and its likely to touch 570 soon. Break and sustain above 570 will see a new bullish era in the near term.

Support and stop loss will remain at below 556 mark on closing basis.

Trade with levels only.

More will update soon!!!

Read More

Currency Report of 13th December 2017

Currency Report 13th December 2017

Indian rupee pared some of its early losses but still ended marginally weaker against the American currency on Tuesday, due to fresh dollar demand from banks and importers. Investors even overlooked the UN DESA's World Economic Situation and Prospects 2018 report, which said that despite a slowdown observed in early 2017, the outlook for India remains positive, underpinned by strong private consumption, robust public investments and structural reforms. Besides, massive losses in domestic equity markets too weighed on the rupee, but dollar’s reduced clout against other currencies overseas helped to cap the losses. 

Consumer price inflation (CPI), or retail inflation as it is better known, for the month of November stood at 4.88 per cent with comparison to 3.63 per cent during the corresponding period last year.

The government data revealed on Tuesday shows that the inflation rate has surged to 15-month high. The previous high was recorded at 5.05 per cent in August last year. November's inflation numbers also breached the RBI's (Reserve Bank of India) mid-term target of 4 per cent.

On the global front, dollar declined against most major currencies as the US Federal Reserve geared up for a two-day policy meeting at which it is widely expected to raise interest rates for the fifth time since late 2015.

USDINR 

Support at 64.40 and Resistance at 64.70

Above 64.70 rally remain continue till 65.00—65.20++ mark else could touch its support level of 64.40 mark.

Fresh selling can be initiated below 64.40

Trade with levels only.

GBPINR

Support at 86.00—85.95 and Resistance at 86.40

Break and sustain below 85.95 will take it to 85.70—85.50 mark else could touch its resistance level of 86.40.

Fresh buying can be initiated above 86.40.

EURINR

Support at 75.85 and Resistance 76.20

Break and sustain above 76.20 will take it to 76.60—76.80 mark else could touch its support level of 75.85

Fresh selling can be initiated below 75.85

JPYINR

Support at 56.90 and resistance at 57.15

Break and sustain above 57.15 will take it to 57.50—57.80+++ mark, else could touch its support level of 56.90.

Fresh selling can be initiated below 56.90

More will update soon!!!

Read More