MCX, the Multi-Commodity Exchange of India Ltd, is the country's first listed exchange. It has earned the tag of being a 'state-of-the-art' exchange that facilitates online trading of commodity derivatives transactions. This allows MCX to provide a platform for price discovery and risk management. MCX started operations way back in November 2003, under the relevant regulatory framework of market regulator Securities and Exchange Board of India (SEBI). The exchange provides a platform for trading in commodity derivative contracts in various segments including agricultural commodities, bullion, energy, and industrial metals. A note on MCX's official website states that it is India’s first exchange to offer commodity options contracts, bullion index futures and base metals index futures contracts. MCX focuses largely on providing commodity value chain participants with transparent, neutral and secure trade mechanisms, along with formulating quality parameters and trade regulations. It has a vast national reach of 597 registered members and as high as 49,999 authorised persons. The exchange had a presence in around 1,103 cities and towns across India as on December 31, 2021. According to MCX, it is the country’s leading commodity derivatives exchange with a market share of 92.9 percent in terms of the value of commodity futures contracts traded in the financial year 2021-22 (Apr-Dec). More
Motilal Oswal is bullish on MCX recommended buy rating on the stock with a target price of Rs 1600 in its research report dated August 01, 2022.
Sebi has already allowed institutional investors such as Category III alternative investment funds, portfolio management services and mutual funds to participate in Exchange Traded Commodity Derivatives
Gold has support at Rs 50,740–50,510, resistance at Rs 51,180–51,350. Silver has support at Rs 61,080-61,550 and resistance is at Rs 62,680–63,110, said Rahul Kalantri, VP Commodities at Mehta Equities.
Unless we bring down the cost of trading, traders would use loopholes to exploit the situation
Motilal Oswal is bullish on MCX recommended buy rating on the stock with a target price of Rs 1500 in its research report date May 17, 2022.
"We expect gold to hold Rs 51,850 levels and silver could hold Rs 65,800 levels on a closing basis in today's session. Weakness in rupee could support prices in the domestic markets," said Manoj Kumar Jain of Prithvi Finmart Commodity Research.
Gold as a safe haven are attractive due to soaring inflation and uncertainty in the Russian-Ukraine war. As long as the two factors continue to dominate markets for sentiment - a scenario for a further uptrend in gold price remains intact. It is a good opportunity to go long on every dips, said Ravi Singh - Vice President and Head of Research - ShareIndia.
Traders and investors continue to assess three major factors— the Russia-Ukraine war, new COVID lockdowns in China and rising global inflation—that are impacting the market
According to Manoj Kumar Jain, Prithvi Finmart Commodity Research, gold has support at Rs 50580-50350 and resistance at Rs 51000-51220 while silver has support at Rs 66450-66000 and resistance at Rs 67500-68100 levels.
The announcement of commodity index options could be a game changer for MCX, which was facing a drop in volume ever since SEBI introduced peak margin norms on commodity futures
Securities Exchange Board of India on Thursday allowed the recognised stock exchanges having a commodity derivative segment to introduce options on commodity indices
Gold may remain volatile as the Russia-Ukraine situation is assessed, however safe haven buying may keep prices supported, said Ravindra Rao of Kotak Securities.
Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart feels that precious metal prices may remain supportive due to ongoing geopolitical matters. As gold price is sustaining above the psychological level of Rs 50000, it may increase the buying momentum in prices towards Rs 50600 levels, he said.
Brokerage Goldman Sachs said in a note that it sees Brent prices at $90 per barrel in the first quarter of 2022, $95 in the second quarter and $100 per barrel in the last two quarters of the year.
Gold Price Today: Selling pressure is expected in precious metals if prices rise towards resistance levels.
Here's what Gaurav Sharma of Globe Capital Markets, recommends investors should do with these stocks when the market resumes trading today.
Index options have the potential of being the main product for the exchange as is the case with NSE, where index options account for over 90 percent of the total exchange volumes.
At the end of fiscal year 2020-21, MCX had a market share of 89.6 percent, while it was much higher at 94.2 percent in 2019-20.
ANMI argued that the rate of overnight margins levied on intraday trades is almost 3.33 times more than what is warranted based on the risks of the trade.
Mutual funds also raised their stake in the stock to 1,07,85,761 shares (21.15 percent stake) in Q4FY21 against 1,03,86,709 shares (20.37 percent stake) in Q3FY21.
The spot gold/silver ratio currently stands at 68.39 to 1 indicating that silver has outperformed gold.
Gold holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell by 4.66 tonnes to 1,160.13 tonnes.
In the futures market, silver for March delivery touched an intraday high of Rs 70,345 and a low of Rs 68,499 per kg on the MCX.
In the futures market, natural gas for January delivery touched an intraday high of Rs 193.60 and an intraday low of Rs 189.10 per mmBtu on MCX.
Motilal Oswal is bullish on MCX recommended buy rating on the stock with a target price of Rs 2000 in its research report dated October 29, 2020.