Sell MCX Crude oil; target Rs 6570: Dani Commodities

Dani Commodities' report on Crude oil

Upbeat US ISM figures and drop in the jobless claims supported the demand for oil from the world's largest consumer of oil. Investors in Asia were inspired by Thursday's rally in U.S. stocks, which lofted the S&P 500 index over the 17,000 mark for the first time ever and the Dow Jones Industrial Average to its own record high. Attention now turns to the closely watched monthly U.S jobs report, slated for release later Friday.

U.S. data have taken on heightened significance as investors prepare for any indication that the Federal Reserve will start winding down its USD85-billion-a-month bond buying program. Today, crude oil September futures opened above USD108 adding to its near 3 percent gains yesterday. Crude oil for September delivery added USD2.86, or 2.7 percent, to end at USD107.89 a barrel on the New York Mercantile Exchange. Oil prices end July with a nearly 9 percent gain.

Oil futures gained after news that the number of people who applied last week for new unemployment benefits fell to the lowest level since early 2008. Initial jobless claims dropped by 19,000 to a seasonally adjusted 326,000. And the Institute for Supply Management said its July manufacturing index surged to a reading of 55.4 percent, the highest level since June 2011. Separately, Chinese government data for July differed with the privately-compiled HSBC survey on whether manufacturing activity was growing or contracting.

MCX CRUDE OIL
International: Major Support for WTI at USD100 Bullish above USD 100
Domestic: Sell at 6610, Stoploss 6640, Target 6570.

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