Silver price remained lower tracking gold and settled down at 62934 that is fall by -3.54% as Wall Street stocks added to their gains on increased investor risk tolerance, but silver cut its decline as some buyers bought dips. Sought as a haven asset in times of uncertainty, the bullion had some players adding to their holdings as a safety play, unconvinced that a day's positive news would stick. Although gains in equities initially caused flight-to-quality buyers of bullion to disappear, there's still a lot of pent up demand on price breaks.
Further QE would likely further undermine the dollar, boosting gold's appeal as a safe store of value. Much of the metal's rally to record highs came on the back of last year's round of easing. Now technically market is trading in the range as RSI for 18days is currently indicating 54.68, where as 50DMA is at 60006.38 and silver is trading above the same and getting support at 62131 and below could see a test of 61329 level, And resistance is now likely to be seen at 64393, a move above could see prices testing 65853.
In this context, LME nickel price will fluctuate higher last week. 30% market players expect that nickel prices will largely remain stable this week. As macro economic environment has not stabilized yet, LME nickel prices will continue to fluctuate. The remaining 20% market players believe that LME nickel prices may fall to certain extent this week.
The soft domestic demand, coupled with weak momentum of LME nickel prices will drag down domestic nickel prices to certain extent. For today's session market is looking to take support at 1000.5, a break below could see a test of 990.6 and where as resistance is now likely to be seen at 1020.9, a move above could see prices testing 1031.4.
Guarseed yesterday we have seen that market has moved 0.33% on lower sowing area prospects amidst even though there were reports of exports getting adversely affected at these higher levels. Moderate rains in Rajasthan and some profit booking at the higher levels prevented the upsurge in rates as traders expect high volatility to be there this week also brought dips to the rising prices.
Guar seed acreage in Rajasthan may still trail 2010's record high despite a fillip from rains last week, a state farm department official had said. The area under guar seed planting in Rajasthan, which accounts for 80 percent of India's total output, stood at 2.608 million hectares -- a jump of 210,000 hectares from Aug. 16 but behind last year's 3 million hectares in total. Guar seed arrivals standing steady at 5,000 bags in the Jodhpur Mandi. In Jodhpur guarseed prices dropped -34 rupees to 4360.2 rupees per 100 kg.
Market has opened at 4480 & made a low of 4454 versus the day high of 4533. The total volume for the day was at 162970 lots and the open interest was at 134940.Now support for the guarseed is seen at 4470 and below could see a test of 4422. Resistance is now likely to be seen at 4549, a move above could see prices testing 4580.
Pepper September delivery gained Rs 195 and settled at Rs 33423/quintal as fundamentals remained strong on expectation of rise in export and domestic demand, and lower stocks and lower global production reports. Exports and domestic demand from North India remained good.
Demand from North India too has been regularly there ahead of the Festive season. Traders expect that with low stocks, lower global production and rising export demand, trend is likely to remain Bullish for the commodity from a medium to long term point of view. Traders expect that good demand and a firm trend in Vietnam could support the rates further.
Good updates demand from Gulf countries sup-porting the rates. Demand from China and West Asia also reported. IPC has predicted 2011 crop to be lower by 2% at 309,952 MT. Carryforward stocks are expected to decline marginally to 94,582 MT vs 95,442 MT. Global exports have declined by 11% to 237,650 MT. Indian production expected to decline to 48,000 MT. Spot pepper gained 185.55 rupees to 32075 rupees per 100 kg in Kochi market.
The contract touched the intra day high of Rs 33614/quintal while low of Rs 33000/quintal. Now support for the pepper is seen at 33077 and below could see a test of 32732. Resistance is now likely to be seen at 33691, a move above could see prices testing 33960.
Menthaoil September contract dropped Rs 2.3 and settled at Rs 1142 due to weak fundamentals but traders feel that with present rates being low, the downtrend may be limited.
The total arrivals of mentha oil stood at 450-500 drums (70 drums for Sambhal mandi). Reports of a fall in production had been keeping the sentiments firm. Rains in growing areas in UP too had been having a Bullish impact on the market sentiments as it affected the Oil extraction process adversely. However effect of rains may not be significant now but indications that production prospects may be lower than the previous estimates could perk up prices further.
On August 26th August total stock of mentha oil at MCX-monitored warehouses at Chandausi was 92,066 kg of which 92,066 kg was physical stock and the demat stock was zero. At Barabanki, the total stock was 9,22,941 kg of which, physical stock accounted for 9,22,413 and demat stock again was nil.
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