Energy

MCX Crude Oil Jan closed at Rs. 3645 per barrel with a loss of Rs. 55 per barrel while NYMEX Crude oil gave closing of $92.70 per barrel for the week. Nymex crude fell on Friday to settle at the lowest price since Dec.20.

· Nymex crude closed lower as market players focused on concerns that slowdown in US economy, world's biggest oil consumer, will affect oil demand, shrugging off supply concerns heightened following reports of violence in Nigeria.

· As per Dow Jones newswires, MEND said on Friday it detonated a remote explosive device that caused a fire on a tanker in Port Harcourt city of Nigeria and said it got help carrying out the attack from people in the energy industry and Nigeria's intelligence services. Nigeria is Africa's biggest oil producer and militant activity here has already affected 20% of oil exports.

· A concern about the health of US economy has increased after a slate of weak economic data and forecasts of slowdown. Federal Reserve Chairman Ben Bernanke on Thursday said the economy would most likely avoid a recession this year but still undergo a period of slow growth and that they were ready to take substantive additional action as needed to support growth.

· In addition to it, Federal Reserve Governor Frederic Mishkin said Friday that Fed needs to act in a timely, decisive and flexible manner in response to financial shocks, as per Dow Jones newswires report. US Treasury Secretary Henry Paulson said Friday that economy should be able to continue to expand but acknowledged that the economy is slowing down fairly rapidly and that the risks are to the downside.

MCX Crude Oil Jan (Daily Chart)



Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day moving average. The upside closing price reversal on the daily chart is somewhat positive. The 9-day

Recommendations: MCX Crude Oil Jan: Sell at 3675-3695 for target of 3615 and 3580 with stop loss below 3735



MCX Natural gas Jan (Daily Chart)



Technical Outlook:

Momentum studies have turned bullish; will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations: MCX Natural Gas Jan: Buy at 315-312 for the target of 329 and 336 with stop loss at 309

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