What Is Commodity Trading With NSE & BSE Report

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Wrap-up for the day (13 OCT 2015):

The market closed with marginal losses on account of profit booking after the recent run up with metal and IT shares leading the fall, ignoring impressive Industrial Production data which grew by 6.4% for the month of August.

Further, weak performance among global peers also dampened investor sentiment.

Nifty ends near 8150 mark fall 11 points and settled at 8131, Sensex falls 57 points and finally ends at 26846.

ALL ABOUT MACRO-ECONOMIC DATA:

August IIP (Industrial Production) grew by 6.4 pct an improvement over the 4.2 pct growth registered in the previous month of June.

However, the September CPI (consumer price index) increased to 4.41 pct, from 3.74 pct recorded for the previous month, on the back of higher food prices.

HEADLINES FOR THE DAY:

  • Reliance Capital up as Nippon Life ups stake in Rel AMC.
  • Suven Life surged as the secured patent for Neuro-degenerative drug.
  • IT stocks extend fall; HCL Tech, Infy tanks more than 2 pct.
  • Bank Of Baroda today appoints PS Jayakumar as MD & CEO.
  • ABB bagged news orders from power grid worth Rs 1.41 billion.
  • Aurobindo Pharma ends flat, EAC panel approves Telangana unit expansion.

STOCKS END IN A GREEN TERRITORY:

  • Oberoi Realty surged after Goldman has advised buy for the stock as well as raise target and bets on Mumbai project.
  • Dr Reddy’s shares gains after Pharma major enters into a settlement agreement with Swiss Co Helsinn Health.
  • DB Realty rallied more than 10 pct today on the news that one of its arm enter into Joint Venture (JV) with Vishwaroop Estates.
  • Aviation stocks like jet airways rallied 12 pct in a volatile market after Brent crude futures fall.

STOCKS END IN A RED TERRITORY:

  •  SBIN fall, as bank is likely to set up new subsidiary for non banking biz.
  • Reliance Power today told that company appoints N Venugopala Rao as CEO; Stock tanks.
  • Cox & Kings ends on a flat to negative note; company acquires LateRooms for Rs 850 million as per reports.
  • Tata Steel shares tanks on the reports that FII (Foreign institutional investors) cut their stake from the company.
  • Glenmark Pharma and Supreme Industries shares tanks (National Stock Exchange) the back of block deal.
  • JSW Steel dips after company announced that its  crude steel production for the second quarter for the FY 2015-16 was lower relative to that of last year.

Q2 RESULTS CORNER:

  • DCB Bank reported poor Q2 results, profit tanks 10 percent, which stood at Rs 36.93 crore on the back of higher provisions and tax cost, NII up 27.44 pct at Rs 150 crore against Rs 117.7 crore compared on a yearly basis.

CALLS FOR NEXT TRADING SESSION

  • Inox Wind EQ gains in an early trade and consolidate for the whole session, buying seen in the next trading session as stock shown some strength. Buy above 384.70 targets 388.60/392.40/396.40 SL 380.50.
  • Sonatsoft EQ gains and given breakouts of its important resistance today fresh buying seen in stock as stock ends near around its resistance, Buy above 158 targets 159.60/161.20/162.80 SL 156.30.

NEWS TO WATCH OUT:

Watch out for the September WPI (India Wholesale Price Index Inflation YoY) numbers tomorrow, i.e. on 14th Oct, forecast -4.43% previously -4.95%.

Results on 14th October 2015:

  • HUL, ZEEL, Network 18, TV18 Broadcast and Goa Carbon are coming up with its Q2 (Quarter 2) results on Wednesday.

Support the Resistance of upcoming Q2 Results:

  • HUL: Support – 800 next support 776; Resistance – 832 next resistance 845.
  • ZEEL: Support – 392 next support 377; Resistance – 407 next resistance 422.
  • Network 18: Support – 47 next support 44; Resistance – 55 next resistance 60.
  • TV18 Broadcast: Support – 32 next support 28; Resistance – 36 next resistance 38.
  • Goa Carbon: Support – 71 next support 62; Resistance – 83 next resistance 87.

A commodity is any type of homogeneous raw materials or goods bought & sold in bulk on an exchange in India.

How It Works/Example:

Grain, electricity, precious metals, oil, orange juice, beef and natural gas are the traditional examples of the commodities, but the foreign currencies, bandwidth, emissions credits and certain economic instruments are also a main part of today’s commodity markets. Regarding to the New York Mercantile Exchange, “A marketplace will flourish for almost any type of commodity as long as, there is a lively pool of buyers & sellers.” Many of brokers and advisers are provide Free Commodity Trading Tips for trading

To be considered, a commodity, an item should satisfy 3 conditions:

  • It should be standardized (for agricultural & industrial commodities, it should be in a “raw” state).
  • It should be usable (i.e., have a shelf life) upon delivery.
  • Its price should vary enough to justify making a market for the item.

The world of the commodities is the complex, fascinating and has a deep effect on economies & consumers around the world.

How Commodities Are Traded:-      

The buyers & sellers can trade commodities either in the spot marketplace (sometimes called the hard cash market), whereby the trader immediately completes their deal based on current rates, or in the futures marketplace.

Most of the buyers & sellers trade commodities in the commodity futures markets by the top commodity tips and NCDEX Trading Tips because several commodity producers — mostly those of the traditional commodities as like grain — bear the peril of the potentially negative rate changes when their commodity products are finally prepared for the market. The futures contracts or agreement, whereby the buyer purchases the compulsion to receive a particular quantity of the commodity at an exact date and at an exact rate, therefore offer some rate stability to commodity producers & users.

The futures contracts are the standardized, meaning that every commodity has the equal specifications for the product’s quantity, quality & delivery. This helps make sure that all rates mean the same thing to each one in the market. The crude oil is an example of a customary commodity, that is the frequently traded using the futures contracts and MCX Trading Tips. Because every kind of the crude oil (light sweet crude for example) meets the similar quality specifications, the buyers know accurately what they are getting, regardless of the source of the crude oil. However, from time to time producers attempt to big brand their products in an try to obtain higher rates.

Regulation:-

The Commodity Futures Trading Commission (CFTC) regulates the commodities futures trading via its enforcement of the Commodity Futures Modernization Act of 2000 and the Commodity Exchange Act of 1974. The CFTC works to guarantee the competitiveness, integrity & efficiency of the commodities futures markets and the protects against abusive trading, manipulation & fraud.

Commodities Exchanges:-

There are 3 major commodity exchanges in the India.:

  • Multi Commodity Exchange (MCX).
  • National Commodity and Derivative Exchange (NCDEX).
  • National Multi Commodity Exchange of India Ltd, Ahmedabad (NMCE)

The commodities exchanges do not put the rates of the traded commodities. While, supply & demand determine commodity rates. The exchange members, who proceed on behalf of their clientele or for their individual account, connect in open outcry auctions in pits on the commodity exchange floors. According to the open-outcry auction, traders announce their bids & offers. When both parties agree on a rate, the trade records both electronically and manually. The commodity exchange then disseminates the rate information to the news services & other reporting agencies whole world.

Commodity exchanges guarantee every trade using clearing associates who are responsible for controlling the payments between buyer & seller.

Some Other Indian Commodity Exchanges

  • Ace Derivatives & Commodity Exchange
  • Bhatinda Om & Oil Exchange Ltd., Batinda
  • E-Commodities Ltd
  • Esugarindia.com
  • First Commodity Exchange of India Ltd, Kochi
  • Haryana Commodities Ltd., Hissar
  • Multi-Commodity Exchange of India
  • National Board of Trade Limited
  • National Commodity & Derivatives Exchange Limited
  • National Multi-Commodity Exchange of India Ltd
  • Rajdhani Oils and Oilseeds Exchange Ltd. , Delhi
  • Surendranagar Cotton oil & Oilseeds Association Ltd
  • The Bikaner Commodities Exchange Limited
  • The Bombay Commodity Exchange Ltd
  • The Bullion Association Limited
  • The Central India Commercial Exchange Ltd, Gwaliar
  • The Chamber of Commerce
  • The East India Cotton Association
  • The East India Jute & Hessian Exchange Ltd,
  • The Indian Pepper and Spice Trade Association
  • The Meerut Agro Commodities Exchange Co. Ltd., Meerut
  • The Rajkot Seeds oil & Bullion Merchants` Association Ltd
  • The Spices and Oilseeds Exchange Ltd.
  • Vijay Beopar Chamber Ltd.,Muzaffarnagar

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