GENERAL MARKET CONDITIONS

It’s the US dollar story for commodities. As long as the US dollar weakens commodities will remain firm. There are concerns that the Federal reserve funding virtually bankrupt companies in US will result in US deficits ballooning. This will be known only after a gap of two to three months. Till then uncertainty will prevail. Due to lack of major market moving news the market focus is on US deficits. Commodities will fall and US dollar will gain as and when market some other news arrives so as switch focus from away from US economy.

TODAY

We prefer to remain on the sidelines and buy on sharp dips as well as sell on a rise. Technically gold, silver, copper and crude oil are bullish.

NYMEX CRUDE OIL (1^ST CONTRACT)

Intra day sellers will emerge only on a consolidated fall below $106 for $103.80 and $99.20. On the higher side $112 and $116.80 are the key resistances.

MCXARUN

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