Details of main commodities in mcx
Gold –
This is the most traded commodity scrip in mcx india.
There are 4different lot siszes-
Gold petal -1gm this is best for practice to place orders with speed. Any mistake done will cause very little loss.
Gold guinea -8gm
Goldm -100gm
Gold -1kg
Gold is defensive in comparison to silver in bullion sector. Gold shows a clear direction in single side.
Stop loss value- min. 40p to 100p
Rs.400 to 1000/- in gold mini.
Hedging- It goes along with silver so hadging is suitable with silver.
1goldm with 40pt stop loss +3silvermic with 150pt stop loss is a suitable hedging combination.
Daily hedging with same commodity-
Buy goldm jan+sell goldm feb@11.54/2.29 &5.54pm sl30p tg80p
Single side daily trade-
Keep stop loss buy@high +sell@low with 30 to 70pt target.This is specially effective in bottoms & picks of goldm.
SILVER–
There are 4different lot sizes-
silvermic -1kg MICRO this is best for practice to place orders with speed. Any mistake done will cause very little loss.
Silverm -5kg
Silver -30kg
Silver is volatile in comparison to GOLD in bullion sector. silver shows a swing in both sides.
Stop loss value- min. 80p to 180p
Rs.300 to 600/- in 3silver micro.
Hedging- It goes along with gold so hedging is suitable with Gold.
1goldm with 40pt stop loss +3silvermic with 150pt stop loss is a suitable hedging combination.
Daily hedging with same commodity-
Buy 3silvermic feb+sell 3silvermic apr@11.54/2.29 &5.54pm sl100p tg250-600p
Single side daily trade-
Keep stop loss buy@high +sell@low with 100 to 400points target.This is specially effective in bottoms & picks with flexible target.
COPPER–
There are 2different lot siszes-
COPPER – 1MT(1 METRIC TON)
CopperM -250kg
copper is volatile in comparison to nickel in base metal sector.
Stop loss value- min. 0.5point to 1pt
Rs.130 to 300/- in copper mini.
Hedging- It goes along with nickel so hedging is suitable with nickel.
1copperm with 1point stop loss +3nickelm with 1pt stop loss is a suitable hedging combination.
Daily hedging with same commodity-
Buy 1copperm feb+sell 1copperm apr@11.54/2.29 &5.54pm sl0.6p tg1.5-3point
Single side daily trade-
Keep stop loss buy@high +sell@low with 1 to 4points target.This is specially effective in bottoms & picks with flexible target.
NICKELM–
There are 2different lot siszes-
NICKEL -250kg
NickelM -100kg
Nickel is volatile in comparison to copper in base metal sector. It may swing from red to blue and blue to red twice a day.
Stop loss value- min. 1.5point to 3pt
Rs.150 to 300/- in nickel mini.
Hedging- It goes along with copper so hedging is suitable with copper.
1copperm with 1point stop loss +3nickelm with 1pt stop loss is a suitable hedging combination.
Daily hedging with same commodity-
Buy 1nickelm dec+sell 1nickelm jan@11.54/2.29 &6.54pm sl2p tg5-12point
Single side daily trade-
Keep stop loss buy@high +sell@low with 3 to 7points target.
This is specially effective in bottoms & picks with flexible target.
It may show a reversal of 15-25points from bottom and pick.
Average daily move-(12of 22trading days)
+1.5 to -1.5%
Extreme move-(3-4 out of22trading days)
+3% or -3-4%
5-6days will show extreme volatility with both side swing or very tight range bound dull day after any big move.
lead–
There are 2different lot siszes-
LEAD -5MT
leadM -1MT
lead & zinc shows almost same moves and behaviour in base metal sector. These are not directly coupled with copper-nickel.
It may show tight range for hours then a sudden move of2-3%.
Stop loss value- min. 0.25pt(25paisa) to 0.4pt
Rs.250 to 400/- in lead mini.
Hedging- It goes along with zinc so hedging is suitable with zinc.
1leadm with 1point stop loss +1zincm with 0.3pt stop loss is a suitable hedging combination.
Even if there is a movement of 80paisa,it will give profit of0.8-0.3=0.5pt
Daily hedging with same commodity-
Buy 1leadmini dec+sell 1leadmini jan@11.54 &6.54pm sl03p tg1-2point
Single side daily trade-
Keep stop loss buy@high +sell@low with 0.7 to 2points target.
This is specially effective in bottoms & picks with flexible target.
It may show a reversal of 2-4points from bottom and pick.
Average daily move-(12of 22trading days)
+1.5 to -1.5%
Extreme move-(3-4 out of22trading days)
+3% or -3-4%
5-6days will show extreme volatility with both side swing or very tight range bound dull day after any big move.
ZINC–
There are 2different lot siszes-
ZINC -5MT
Zincmini -1MT
lead & zinc shows almost same moves and behaviour in base metal sector. These are not directly coupled with copper-nickel.
It may show tight range for hours then a sudden move of2-3%.
Stop loss value- min. 0.25pt(25paisa) to 0.4pt
Rs.250 to 400/- in zinc mini.
Hedging- It goes along with lead so hedging is suitable with lead.
1leadm with 1point stop loss +1zincm with 0.3pt stop loss is a suitable hedging combination.
Even if there is a movement of 80paisa,it will give profit of0.8-0.3=0.5pt
Daily hedging with same commodity-
Buy 1zincmini dec+sell 1zincmini jan@11.54 &6.54pm sl03p tg1-2point
Single side daily trade-
Keep stop loss buy@high +sell@low with 0.7 to 2points target.
This is specially effective in bottoms & picks with flexible target.
It may show a reversal of 2-4points from bottom and pick.
Average daily move-(12of 22trading days)
+1 to -1%
Extreme move-(3-4 out of22trading days)
+3% or -3%
5-6days will show extreme volatility with both side swing or very tight range bound dull day after any big move.
CRUDE –
There are 2different lot siszes-
CRUDE -100 BBL
CrudeM -10 BBL
Crude & Natural Gas NG are totally different and de coupled in ENERGY sector.There is no co relation between these two like any other sector .
Crude shows continuous movement in afternoon & evening.
Stop loss value- min. 6pt to 15pt
Rs.60 to 150/- in crudeM. We can buy or sell 6-8 mini lots.
Hedging- same commodity hedging is possible only.Can’t be hedged with NG natural gas.
Buy 7crudem December+sell 7crudem january stop loss7point tg20-60points is a suitable hedging combination.
Even if there is a movement of 17points,it will give profit of 10pt.
It will be 700/- in 7mini lots or 1000/- in big lots.
Daily hedging with same commodity-
Buy crudeM dec+sell crudeM jan@11.54/2.29pm &6.54pm sl6p tg12point
Single side daily trade-
Keep stop loss buy@high +sell@low with 9 to 22points target.
This is specially effective in bottoms & picks with flexible target.
It may show a reversal of 70 to120points from bottom and pick.
Average daily move-(12of 22trading days)
+1 to -1%
Extreme move-(7 out of22trading days)
+3% or -3%
4 or 5 inventory days are there on every Wednesday in a month. Inventory timing may be 8pm/9pm.Open hedging just before 1minute and book fast at dot time big move.
Timing should be confirmed by www.forexfactory.com website economic calendar.
5-6days will show extreme volatility with both side swing after a continuous fall or rally forming double top/double bottom reversal.
NATURAL GAS – NG
No mini lot available.Single lot size is there.
NATURALGAS -125 BBL
Crude & Natural Gas NG are totally different and de coupled in ENERGY sector.There is no co relation between these two like any other sector .
NG shows continuous movement in afternoon & evening.
Stop loss value- min. 0.40pt to 1pt
Rs.500 to 1200/- in 1LOT.
Buy defensive near ATP or resistance/support level,So that small stoploss may work. It is good for day time movement.
Hedging- same commodity hedging is possible only.Can’t be hedged with crude.
Buy 1NG December+sell 1NG january stop loss0.40pt tgt 1-3points is a suitable hedging combination.
Even if there is a movement of 1point,it will give profit of 0.60pt.
It will be 800/- in single lot.
Daily hedging with same commodity-
Buy crudeM dec+sell crudeM jan@11.54/2.29pm sl0.4p tg1-3point
Single side daily trade-
Keep stop loss buy@high +sell@low with 1 to 3 points target.
This is specially effective in bottoms & picks with flexible target.
It may show a reversal of 3 to6points from bottom and pick.
Average daily move-(12of 22trading days)
+1 to -1%
Extreme move-(7 out of22trading days)
+3% or -3%
4 or 5 inventory days are there on every thursday in a month. Inventory timing may be 8pm/9pm.Open hedging just before 1minute and book fast at dot time big move.
Buy NG dec+sell NG jan@ dot7.59pm sl0.70pt tgt2-5pt.
It may hit both side stop loss in inventory 2 out of 5times in a month.
But you may get 4-5 points on 2 inventory day.
So monthly gains may be 11-3=8pt monthly.Single lot will give+10000.
4lots may deliver+40000 monthly.
Timing should be confirmed by www.forexfactory.com website economic calendar.
5-6days will show extreme volatility with both side swing after a continuous fall or rally forming double top/double bottom reversal.
MENTHA OIL
No mini lot available.Single lot size is there.
NATURALGAS -125 BBL
MENTHA OIL is traded from 10am to 5pm only.
It shows daily movement in daytime.
Stop loss value- min. 1.5pt to 3pt
Rs.500 to 1100/- in 1LOT.
Buy defensive near ATP or resistance/support level,So that small stoploss may work. It is good for day time movement.
Hedging- same commodity hedging is possible only.
Even if there is a movement of 1point,it will give profit of 0.60pt.
It will be 800/- in single lot.
Daily hedging with same commodity-
Buy mentha dec+sell mentha jan@4.29pm sl1.5pt 4-8point
Single side daily trade-
Keep stop loss buy@high +sell@low with 1 to 3 points target.
This is specially effective in bottoms & picks with flexible target.
It may show a reversal of 12 to30points from bottom and pick.
Average daily move-(12of 22trading days)
+2 to -2%
Extreme move-(7 out of22trading days)
+4% or -4%
So monthly gains may be 15%.Single lot will give+20000.
4lots may deliver+80000 monthly.
Timing should be confirmed by www.forexfactory.com website economic calendar.
5-6days will show extreme volatility with both side swing after a continuous fall or rally forming double top/double bottom reversal.
NG fundamentals
Natural gas is a vital component of the world’s energy supply. It is one of the cleanest, safest, and the most useful of all energy sources. Natural gas is a combustible mixture of hydrocarbon gases. While natural gas is formed primarily of methane, it can also include ethane, propane, butane, and pentane. When compressed at a pressure of 250 bars, natural gas is called compressed natural gas (CNG).
Applications
Burning natural gas is relatively clean, as it produces about 30% to 40% of less carbon dioxide than petroleum and coal. Natural gas is primarily used in homes, businesses, and factories for heating, cooking, and cooling. It is increasingly being used as a source of energy for generating electricity through gas turbines and steam turbines. CNG is commonly being used as a fuel for public transport vehicles. In addition, natural gas is used as a base ingredient in the manufacturing of ammonia, anti-freeze, fabrics, glass, steel, plastics, and paint.
Global production
Global natural gas production grew by 1.1%, which was well below the 10-year average of 2.5%. Growth was below average in all regions except Europe and Eurasia. The U.S. (+1.3%) remained the world’s leading producer, but both Russia (+2.4%) and China (+9.5%) recorded larger growth increments in 2013. Nigeria (-16.4%), India (-16.3%), and Norway (-5%) recorded the largest volumetric declines.
Global consumption
World natural gas consumption grew by 1.4%, below the historical average of 2.6%. And, as was the case for primary energy, consumption growth was above average in the OECD countries (+1.8%) and below average outside the OECD (+1.1%). Growth was below average in every region except North America. India (-12.2%) recorded the largest volumetric decline in the world, while EU gas consumption fell to the lowest since 1999. Globally, natural gas accounted for 23.7% of primary energy consumption.
Factor affecting NG price
Natural gas inventory data
US weather conditions and active hurricane season poses a threat to US Gulf Coast’s natural gas production
Price of crude oil Industrial and
residential demand in the U.S.
Trading unit 1250 mmBtu
Maximum order size 20,000 mmBtu
Tick size (minimum price movement) 10 paise (0.10 rupees)
Daily price limits The base price limit will be 4%.
Whenever the base daily price limit is breached, the relaxation will be allowed upto 6% without any cooling off period in the trade.
In case the daily price limit of 6% is also breached, then after a cooling off period of 15 minutes, the daily price limit will be relaxed upto 9% In case price movement in international markets is more than the maximum daily price limit (currently 9%), the same may be further relaxed in steps of 3% and inform the Commission immediately.
Initial margin Minimum 5% or based on SPAN whichever is higher.
Special margin In case of additional volatility, an additional margin (on both buy and sell side) and / or special margin (on either buy or sell side) at such percentage, as deemed fit, will be imposed in respect of all outstanding positions.
Maximum allowable open position* For individual client: 60,00,000 mmBtu or 5% of the market wide open position, whichever is higher For a member collectively for all clients: 6,00,00,000 mmBtu or 20% of the market wide position, whichever is higher.
Delivery unit 10,000 mmBtu Delivery centre Hazira Hub
Quality specifications It should be of the standard pipeline quality.
The quantity of natural gas bought or sold under any contract will be delivered at the uniform hourly rate (with maximum of 10% variation) during the period of eight hours covered under the contract
GOLD fundamentals
Gold (Au) is primarily a monetary asset and partly a commodity. =
It is the world’s oldest international currency. =
It is an important element of global monetary reserves. = D
emand for gold totalled 3,923.7 tonnes (t) in 2014.
Jewellery demand was down by 10% to 2,152.9 t, but 5% above its five-year average. =
In 2014, investment in gold rose 2% to 904.6 t, although that in bar and coin fell almost 40% from the 2013 record of 1765 t. = Central banks bought 477.2 t of gold in 2014, close to a 50-year high.
Continued substitution pushed gold usage in technology-oriented demand to an 11-year low of 389 t. = Total supply of gold in 2014 was flat—mine production was a record 3,114.4 t while recycling fell to a seven-year low of 1,121.7 t.
APPLICATION
Gold has a long and fascinating usage history in a diverse range of industries and applications. In each of the applications it is used, gold provides an outstanding performance due to its unique technical properties of being one of the most malleable and ductile metals with high melting point and easy recyclability.
Gold is a material of choice in medicine and dentistry as it is biocompatible.
In recent years it has emerged as a key nanomaterial.
Global demand for gold is centered on four primary categories: jewellery, investment, central bank reserves, and technology.
FACTORS INFLUENCING PRICE
Above-ground supply of gold from central bank sales, reclaimed scrap, and official gold loans. =
Hedging interest of producers and miners. =
World macroeconomic factors, such as movement in the dollar and interest rate, and economic events. = Commodity-specific events, such as the construction of new production facilities or processes, unexpected mine or plant closures, or industry restructuring. =
In India, gold demand is also influenced by seasonality, that is, marriage and harvesting
IMPORTANT WEB SITES
www.gfms.co.uk | www.lbma.org.uk | www.nymex.com | www.tocom.com.jp | www.gold.org |www.kitco.com | www.dmcc.ae | www.iab.gov.tr | www.usagold.com
NICKEL FUNDAMENTALS
Nickel is the main alloying metal required in the production of certain types of stainless steel. The strength and life span of products manufactured using stainless steel are superior to those produced by using nonstainless steel.
Nickel is primarily used (65 per cent) in the manufacturing of stainless steel. About 18 per cent of the metal is used to produce other steel and non-ferrous alloys. 7 per cent of the nickel is used in electro-plating, with about 6 per cent being used in coins and chemicals. It is also used in the production of super-alloys which are used extensively in the aerospace industry. Nickel-cadmium and other nickel alloys have been used to make batteries for electronic gadgets—mobile phones, computers, digital cameras, and so on—that need small, light weight, high capacity power sources. World production of smelter/refined nickel during 2014 was 1.93 million metric tonnes (MMT), almost at that of 2013 at 1.98 MMT; the world’s consumption during 2014 was at 1.70 MMT as against 1.79 MMT in 2013. For private circulation only. World refined nickel production smelter/ World smelter/refined nickel consumption Source: Brook Hunt – A Wood Mackenzie Company Source: World Bureau of Metal Statistics (accessed from Bloomberg) Multi Commodity Exchange of India Limited (MCX) is a state-of-the-art commodity futures exchange based in India. The exchange facilitates online trading in commodity futures contracts across segments, including bullion, base metals, energy, and agricultural commodities, besides offering clearing and settlement services. The exchange thus provides an effective mechanism for price risk management. MCX is a leading commodity exchange in India, with a market share of 84.06%* (2014-15) *In terms of the value of commodity futures contracts traded (Source: FMC Data, May 2015) Global nickel consumption,
FACTORS AFFECTING MARKET
Nickel prices in India are arrived at based on the rates that rule on the international spot market, and the rupee–dollar exchange rates. =
Economic events, such as national industrial growth, global financial crisis, recession, and inflation, affect metal prices. =
Commodity-specific events, such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures, or industry restructuring, affect the market. =
Trade policies set by the government (implementation or suspension of taxes, penalties, and quotas) affect supply as they regulate (restricting or encouraging) material flow. =
Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes. =
As societies develop, their demand for metal increases based on their current economic position, which could also be referred to as the ‘national economic growth factor’.
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