LIVE FUTURES REPORT

LIVE FUTURES REPORT 12/03/2019 :

Base Metals - Copper and Zinc gained momentum

Zinc trading high among all base metals. It has jumped almost 3% on MCX in the evening session. A lot of volatility has been seen from yesterday. Today in morning session it was very volatile and was hard to trade. Bulls were trying their hard to move up zinc price while bears had their own reasons to sell and drag the price down. But lastly, bulls win the move. 

No doubt long term demand in zinc is bullish. In new technology battery which will be more power efficient and with long service hour in which zinc has to be used as main components. 

In my previous post, I have said that Zinc has maintained its weekly support level and wrote that it should move up next week. You can read that post of mine here. 

The rupee tends to go near 69 levels. From there a buying may be seen by RBI, in recent past RBI intervention have been seen in which RBI sold dollar to support and stabilize rupee. So he can buy again on this lower range for his foreign reserve. 

If rupee turns towards weakness in coming days due to the general election in India and uncertainty about government stability, then base metals and bullion may get support.

In coming days Fed announcement on the interest rate which is coming on 20-21 March will be also in focus. Although there is a little or no chance of interest rate hike in this meeting, according to many experts.

Gold/Silver taking supports from yesterday at the lower level and may move up in coming days, but I am not much bullish now. Although a small pullback can't be ignored at this level. We will see how gold/silver reacts when fed announcement date comes closer.

Disclaimer: commodity trading is highly risky and may erode your big portion of capital. The trading/investing decision should be very thoughtful by calculating risk reward. This article presents my personal thought and opinion and not a piece of trading advice.