A Simple Guide To Commodity Trading With NSE & BSE Report

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Market wrap-up (06 July 2015):

Market recovers from the day low; Nifty above 8500 levels.

After gap down opening Benchmark shares indices staged a recovery in noon trades with high returns as global markets are reeling under Greece crisis gains led by pharma and Media stocks. Nifty ends above 8500 level gains 37 points to ends at 8522 on the other hand Sensex gains 115 points and ends above 28000 level at 28208.

HEADLINES FOR THE DAY:

  • Pharma stocks were in the limelight today to governmental boost.
  • Shares of Tech Mahindra hit fresh low on weak April-June outlook.
  • Shares of Arvind group were in demand; Arvind Remedies locked with upper circuit.
  • Metal shares were under pressure today; Vedanta hits fresh low.
  • Shares of OMC gains as much as on the back of fall in oil prices.
  • Tilak nagar Industries (TI) locked with upper circuit on buyout report

KEY STOCKS FOR THE DAY:

  • Shares of Kotak bank moved higher as much as after the bank said it had received the nod from FIPB to increase FII (Foreign Institutional Investor) limit.
  • Essar oil gains more than 18 percent today and hits fresh high on the back of heavy volumes and fall in oil prices.
  • Shares of Bajaj Electrical s will recover from its day low and gains more than 3 percent today after reported strong June sales number.
  • Elder Pharma locked with 20 percent upper circuit for the second straight day on the back of huge trading volumes.
  • Shares of shoppers stop recovered from its day low on future growth plans.
  • Bharat Forge dips in an otherwise market after foreign brokerage house BoAML (Bank of America Merrill Lynch) downgrade stock rating to under perform.
  • UPL share gains as much as after the company said that they are planning to raise Rs 30 billion and received nods from their shareholder regarding it.
  • Handicapper (Hindustan Copper) falls on the media reports that the government may divest 15 percent of its stake.
  • Shares of VA Tech Wabag moved higher after company JV wins new project worth Rs 5.80 billion.
  • Petronet falls on the media reports that RBI (Reserve Bank of India) ban fresh FII (Foreign Institutional Investor) buying.
  • Shares of PVR gains today after the company told that their plans to set up over 1000 new cents by 2018 in Dhanbad in Jharkhand & Pathankot in Punjab.
  • JK Tyres gains on the reports that the company is acquiring Birla Tires from kesoramind (Kesoram Industries.)
  • ABCIL moved higher on the positive news that the company received a nod regarding merger with Grasim Industries.

Tomorrow Nifty Tips & Calls::

  • Shares of shivamuato EQ gains and hits fresh, high early trades and consolidates for the whole trading session, which indicates more buying from current level. Buy above 144 targets 145.40/146.90/148.40 maintain SL of 142.50.
  • Shares of Rs software EQ showed a good recovery from the lower level as well as in daily chart trend line could be seen, more fresh buying could be seen if able to give a breakout of its resistance i.e. 211.50 entries above it targets as follows 213.60/215.75/217.90 SL 209.

GLOBAL MARKET:

  • On the global front, China’s benchmark Shanghai Composite gains after market participants such as brokerages and fund managers offered to buy huge quantities of stocks to bring out stability.

 

Guide To Commodity Trading:-

In the year of 2003, the ban on Indian commodity trading was appeared after 40 years, in India. Nowadays, more & more people are highly interested in investing in commodity trading asset class. Until price movements in the sector can get rather very volatile depending on the returns, category is comparatively higher.

However, this is not a chief area of monetary investment for the most, there is lots of apprehension regarding when & how to invest in commodity. Outlook cash money seeks to answer a few of these queries and help you appraise a whole new turn for creating money.

Invest in commodities:-

Commodities permit a portfolio to get a better overall earning at the similar level of peril. Ibbotson Associates, a most important U.S. -based authority on the benefit allocation estimations that commodities raised returns between 133 & 188 basis points, at no further risk.

Who should invest?:-

Any investor or traders who wish for to take advantage and benefit of rate movements and good wishes to diversify his assortment can spend in commodity products. However, retail & small investors must be careful until investing in the commodities as the swings are very volatile and lack of information & knowledge may affect in loss of wealth.

Investors should understand, what the demand cycles that the commodities go during and must have a view on what issues may affect this. Idyllically, you must invest in choosing commodities, that you can analyze rather than move across the products you have no any idea about.

Investing in the commodity products should be started as a cricketer in your portfolio and not as the primary destination for your cash money.

Commodity Trading:-

In general parlance, commodities mean every type of products or goods or raw materials. However, the FCRA (Foreign Currency Regulation Act) defines them as Each & every kind of changeable property other than, money, actionable claims & securities.’

The commodity trading is nothing, but the trading in the commodity spot & derivatives (such as futures). If you are interested in taking a sell or buy position based on the commodity future performance of the agricultural commodities or commodities such as gold & silver metals or crude, then you can do so by commodity derivatives trading.

The commodity derivatives are bought & sold on the NCDEX (National Commodity and Derivative Exchange) and the MCX (Mulch-Commodity Exchange). Gold, silver, copper, crude oil, steel bought & sold on MCX and Agri-commodities involving grains, spices, pulses, oils & oil seeds, metals, Mentha oil and crude oil are some of the commodity products that these exchanges trades in and provide Commodity MCX Tips for better profit..

The commodities futures trading is quite equal to stock futures market trading. You must take a high position (where you pay money for a contract or agreement) or a short position (where you put it up for sale it). Simply talking, like in stock and other trading markets, if you think rates are on their best way up, you get a high position.

Indian Commodity Trading Market Vs Asian Markets:-

The commodity marketplace in India clocks an every day average turnover at the Rs 12,000 to 15,000 crore Rs 120 to 150 billion. The accumulative commodity derivative deal value is expected to have reached the comparables of 66% of the gross domestic level product and the commodity future will only look the percentage increasing, says Trifid Research C.E.O Mr. Vivek Tyagi.

Important Factors For Start Trading:-

Like stock markets, you have to confirm the ‘know your client’ norm with a commodity market broker. A PAN card, photo identification & proof of address are very essential for the registration. You will have to sign the essential agreements with the commodity broker.

The Forward Markets Commission (FMC) is the regulatory organization for the commodity trading market in India. FMC is the similarity of the Securities & Exchange Board of India (Sebi), which shields the interests of traders in securities.

Every commodity product produced in the mineral, agriculture & fossil sectors has been approved for commodity futures trading. These comprise cereals, ginned cotton, pulses, nu-ginned cotton, jute, jute products, oilseeds, oils, sugar, gaur, potatoes, onions, petrochemicals, coffee, tea and bullion among others. The persons can be bought & sold these commodities under NCDEX with proper using Commodity NCDEX Tips.

What are the risk factors:-

The commodity trading is completed in the form of commodity futures and that give up a huge potential for earning, profit & loss as it includes predictions of the future and hence uncertainty & risk. Risk factors in the commodity trading are too similar to commodity futures trading in stock markets.

A big difference is that, the data & information available on demand & supply cycles in commodity trading markets is not as robust and managed as the stock market.

Important Factors that Affected Commodity Prices:-

The commodity trading market is driven by supply & demand factors and inventory, when it approaches to perishable commodity products as like agricultural products & high demand products as like crude oil. Like any type of marketplace, the demand & supply equation influences the rates. Variables like weather, government policies, social changes and global issues influence the balance.

Diversification is the best but, if you have more confidence in your technique don’t diversify as too much diversification can willowy the profit impending. Taking peril is also significant, if you believe you can make huge incomes, simply by playing, it secure then you are incorrect.

Directional Trading & Day Trading:-

The main key difference between the commodity markets & stock markets is the environment, nature of products bought & sold. Agricultural create is unpredictable & seasonal. During the harvesting season, the rates of these commodity products is low as supply goes upward. There are traders or investors who use these patterns to buy & sell in the commodity marketplace and this is termed core directional trading.

Day trading in the commodity markets is no dissimilar from the day trading in the stock market, where the positions are bought in the starting session as a morning and squared off by the end session of the day.

How to Keep Updated:-

Most of the commodity trading & advisory firms have a great research team in place that gets ready commodity charts & conducts detailed analysis of the market trends of the commodity in the question.

Investing strategies and plans based on this analysis are usually provided to customers.

They usually give daily & weekly market reports previous to the market opens and Intraday calls and Commodity Tips during trading hours, beside with monthly & yearly research reports.

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