Sell MCX Crude oil; target Rs 6400: Dani Commodities

Dani Commodities' report on energy

Crude oil futures are trading slightly higher in Asia electronic session today weighed down by the bearish equities and on higher than expected rise in the weekly inventories* Crude oil for November is trading down 6 cents at USD 103.43 per barrel on the New York Mercantile Exchange*Yesterday, it settled higher by 0.45% at USD103.49 per barrel. The American Petroleum Institute late Tuesday reported a 2.8 million-barrel climb in crude supplies for the week ended Oct*4*A Platts survey of analysts had called for an increase of 2.2 million barrels.

The API data came ahead of the more closely watched Energy Information Administration report due later Wednesday. A monthly report from the U.S*Energy Information Administration Tuesday forecast average Brent oil prices at USD107 and West Texas Intermediate oil prices at USD101 for the fourth quarter. Before the report, oil futures closed higher, with a slip in China’s monthly services activity and the International Monetary Fund’s reduction to the world economic growth outlook capping gains.

IMF cut its international growth forecast on Tuesday to 2.9%*Downside risks are building and urgent policy actions are needed to keep the global economy from getting mired in sup-par growth, the IMF said in its latest report on the world economic outlook*It also cut its 2013-2014 forecasts for growth in China.

MCX CRUDE OIL
International: Major Support for WTI at USD100 Bullish above USD 100
Domestic: Sell below 6435, Stoploss 6460, Target 6400.

MCX NATURAL GAS
Domestic: Buy at 231, Stoploss 229, Target 234.

MCX NICKEL
Domestic: Sell at 870, Stoploss 876, Target 862.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More