MCX Trade Tips

IIFL has come out with its fundamental view on Gold and Silver.

Fundamental View

Gold Prices are settled lower, suppressed by a stronger US dollar. Though, Gold prices are trading higher today, supported by reports of European officials meeting tomorrow and anticipated to sign off on rules for borrowing against the European Financial Stability Facility (EFSF), as well as guidelines for intervening in the euro-zone bond markets and providing credit lines to governments.

COMEX Gold (Dec)
Recommendation: Buy at US$1,689 TGT US$1,710 SL US$1,687

MCX Gold (Dec)
Recommendation: Buy at Rs 28,600 TGT Rs 28,900 SL Rs 28,550

Silver Prices are settled lower by 2.7% at US$31.1/ounce. Silver prices made a high of US$31.9/ounce and a low of US$31/ounce. The white metal continuous to trade on a weak note, blocked by gloomy economic backdrop. On the domestic front, MCX December Silver settled lower by 1.7% on Friday at Rs54,316/kg. Silver prices managed a high of Rs55,314/kg and a low of Rs,54,168/kg. Today, Silver prices are trading higher by 1.22% at Rs54,993/kg.

COMEX Silver (Dec)

Recommendation: Buy at US$31 TGT US$32.20 SL US$ 30.80
MCX Silver (Dec)

Recommendation: Buy at Rs 54,700 TGT Rs 55,450 SL Rs 54,100
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Multi Commodity Exchange of India (MCX) has received the SEBI approval for its proposed initial public offer of 64.27 lakh shares. Confirming the development a MCX spokesperson said the exchange has been asked to file offer document with the Bombay Stock Exchange and Registrars of Companies (RoC).

MCX received the SEBI nod for the third time as the exchange could not launch its IPO in 2006 and 2008 due to critical conditions of market.

The issue will at first be listed on the BSE and later on the NSE, which holds 2.45 per cent stake in MCX. Financial Technologies, the promoter of MCX, along with six other institutions will cumulatively offload 12.60 per cent stake to rise about Rs 750 crore through issue.

“The IPO may be priced at about Rs 1,200 a share as the last private placement of MCX shares with a face value of Rs 5 was done at Rs 620 a share. Now, the exchange is offering shares with a face value of Rs 10 through the IPO,” said an analyst.MCX is the sixth largest commodity exchange in the world with number one ranking in silver and number two in gold, will be the first exchange in India to go public.Financial Technologies supposed to be bring down its holding in MCX to 26 per cent from 31 per cent by September-end, recently received an extension of six months from FMC.

Indian markets have just thrown open a new opportunity for retail investors and traders to participate: commodity derivatives. People who want to diversify their portfolios beyond shares, bonds and real estate, commodities is the best option

FAQ’s on how a retail investor can get started:

Where to go for trade in commodity futures?
There are three options - the National Commodity and Derivative Exchange, the Multi Commodity Exchange of India Ltd and the National Multi Commodity Exchange of India Ltd. All are having electronic trading and settlement systems and a national presence.

How to select broker?
A number of established equity brokers have sought membership with NCDEX and MCX. The likes of Refco Sify Securities, SSKI (Sharekhan) and ICICIcommtrade.

Requirements at broker level?
One must enters into a normal account agreements with the broker which include the procedure of the Know Your Client format that exist in equity trading and terms of conditions of the exchanges and broker.

Where to look information on commodities?
Daily financial newspapers carry spot prices and related news and articles on most commodities. Also, there are specialized magazines on agricultural commodities and metals available for subscription. Brokers also provide research and analysis support. We at Carrot Investment provides you best free commodity tips and MCX Tips

If one wishes for investment in commodity market then it is relatively essential to know about amount of risks involved in it. To make the best profit you also need to get the right time so that you can remain much safer in the market.

Get the right source of information
If one wants to get some good source of information on the stock market then you should make sure that you are able to get the best one for you by looking at the stock charts. Additional thing is that you can do is to watch the business news on a regular basis that would help you to take the right initiative on where and when to invest in the stocks. Before investing in any type of stocks it is vital to catch the company’s history. This would certainly help for making ultimate income and fee; glad that you have tried your best effort in getting the right type of stocks for you and also make sure of the market condition by reading the daily business newspaper.

Choosing Best investment plan
If you are looking forward for to your short term investment then you can make yourself available for day trading. You should be able to look at the risks present in it so that you do not make a huge loss by investing in the non profitable stocks. So it totally depends on you how you take the decision to invest in the market. You should know the right way to go for mcx trading in the market so that you do not lag behind any knowledge. Thus you have learnt, “Why should I opt for MCX Tips from the market?”

Weakness in rupee against the dollar it has support gold and silver in the domestic market. Rupee against the dollar has reached 32-month low. So for the time being investors are interested in currency trading or dollar.

Today all base metal trading at positive note. Copper trading on MCX nearly up by 1%. If copper cross 387 levels it move upward side.

Copper Call: Buy copper (Nov) above 387 Target: 389 stoploss: 385
Crude oil call: Buy crude oil (Dec) above 5088 Target: 5092 stoploss: 5084