Tag: 上海龙凤交友论坛XAE

Ban on futures trade of agri items must go: NCDEX chief

Posted on by

There are no valid grounds to continue with the suspension of futures trade in some of the agricultural commodities announced by the government last year, Arun Raste, MD & CEO, National Commodity and Derivatives Exchange (NCDEX), said on Wednesday.

“Continuance with futures trading ban on mustard seed, soybean and chana have deprived farmers of getting reference prices for the specific commodity,” Raste told FE.

He said that global edible oil prices rose because of geopolitical situations such as a decline in the soybean crop in key producing countries such as Paraguay, Argentina and Brazil, disruption in sunflower supplies from Ukraine and Indonesia briefly imposing a ban on exports.

Also Read: Futures don’t lead to unusual fluctuations in turmeric prices: NCDEX panel

“Looking at the geopolitical situation as it was prevalent a year ago, there is a huge difference now as supplies of edible oil have smoothened,” he said. India imports about 56% of its edible oil consumption.

On the price movement of chana, which has a share of 50% in the country’s production of pulses, Raste said that since the imposition futures trade ban last year, the price movement has been constant and prices are ruling around 5% (+/-) of the minimum support price (MSP) of Rs 5,230 per quintal announced for the 2021-22 season.

“There is absolutely no mechanism where anybody manipulates prices for their own benefits, which could adversely impact consumers,” he said.

Also Read: The path to better futures

To curb inflation, on December 20, 2021, commodity exchange regulator Securities & Exchange Board of India had banned futures trade of wheat, paddy (non-basmati), chana, mustard seeds, soya bean, crude palm oil and moong for one year. Earlier, mustard seed and chana (gram) futures trade was suspended on October 8, 2021 and August 16, 2021.

Following the imposition of ban on futures trade on agricultural commodities, the daily turnover over NCDEX declined by around 70% to Rs 300-400 crore from more than Rs 2,000 crore reported earlier.

“We have come back to Rs 1,000 crore daily turnover currently, as spices and guar gum volumes have picked up,” Raste said. If the futures trade ban on mustard, chana and soybean are lifted, NCDEX’s daily turnover could be `3,000 crore.

Through futures trade, farmers have got benefits, as it provides a price discovery platform, while those opposed to futures trade do not like transparency in the process, he said.

Currently, NCDEX is providing futures trading options for around 11 commodities such as guar gum and spices such as coriander, jeera, turmeric etc. It also introduced steel futures trade in the non-agri category. Meanwhile, according to a study conducted by three researchers, including one from the Indian Institute of Management (IIM), Udaipur, the suspension of futures trade in several agricultural items on the commodity exchanges last year have had no impact on the retail price volatility.

Gold Price Today, 15 Sep 2022: MCX gold looks vulnerable till 49500, sell on rise; check support, resistance

Posted on by

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading weak in India on Thursday, on the back of weak global cues. On Multi commodity Exchange, gold October futures were ruling Rs 195 or 0.4 per cent down at Rs 49,823 per 10 gram, as against the previous close of Rs 50,018. Silver December futures were trading Rs 113 or 0.2 per cent down at Rs 56,873 per kg. Globally, yellow metal  prices inched lower as a firmer dollar and expectations of big interest rate hikes from the U.S. Federal Reserve diminished the metal’s appeal, according to Reuters. Spot gold fell 0.1% to $1,693.81 per ounce, while U.S. gold futures were down 0.3% at $1,704.4. The dollar index edged 0.1% higher towards recent peaks, making gold expensive for buyers holding other currencies.

Also read: Bank Nifty support at 40000, Nifty to trade flat on today’s expiry; use Call Ladder for 22 Sep F&O expiry

COMEX gold trades modestly lower amid stable US dollar and higher bond yields as US inflation data did little to deter market expectations that the Fed may continue with aggressive rate hikes. Also weighing on gold price is continuing ETF outflows which shows lack of investor interest. Gold has corrected after failing to break past the $1750/oz level and may remain under pressure as market players position for the Fed meeting next week however we need to see if it manages to hold near the $1700/oz level.

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Gold is under $1700 despite US PPI meeting market expectation. The follow up selling continues after yesterday’s fall when the market was caught wrong footed after US inflation data came higher than expected. $1690-$1685 is the zone where typically buyers emerge and if gold fails to hold this level, then expect prices to test $1675-$1650. In MCX, price has already breached its recent swing low of 49876 and is looking vulnerable till 49500. So sell on rise should be the theme today for intraday with stoploss of 50400 and expected target of 49500.

Also read: Fitch cuts India’s FY23 GDP growth forecast to 7%; high inflation, policy tightening dampen economic prospects

Tapan Patel, Senior Analyst — Commodities, HDFC Securities

Gold prices traded weak on Thursday with COMEX Spot gold prices were trading near $1691 per ounce in the morning trade. MCX Gold October futures opened lower in line with weak global cues, were trading 0.37% down near Rs. 49837 per 10 gram. The yellow metal fell below $1700 on growing optimism over aggressive rate hike from US FED with surge in inflation numbers. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1676 and resistance at $1710 per ounce. MCX Gold October support lies at Rs. 49600 and resistance at Rs. 50100 per 10 gram.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

Will bulls take a backseat as bears drag Nifty below 17800? 5 things to know before market opening bell

Posted on by

Bulls are likely to take backseat on Friday as SGX Nifty hinted at a negative start for Indian equities. Nifty futures traded 111 points, or 0.62% lower at 17,768 on the Singapore Exchange, signaling that NSE Nifty 50 and BSE Sensex were headed for a negative start. “We broadly remain positive on the markets and suggest buying on dips. Nifty trades with a positive bias on monthly basis but short term momentum indicators suggest some jitters. This could result in a phase of correction/consolidation. IT and select BFSI stocks remain attractive while Banking can witness some profit booking,” said Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities.

Also Read: Adani Ports, PVR, Tata Power, UPL, Reliance, BPCL, Ami Lifesciences stocks in focus on 16 September 2022

Technical view: “A long negative candle was formed on the daily chart, that has engulfed the long bull candle of Wednesday on the downside. Technically, this market action signal emergence of selling pressure at the resistance of 18100 levels. On the downside, the Nifty is expected to find support around 17750-17700 levels in the short term. The short-term trend of Nifty continues to be range bound around 18100-17700 levels. There is a possibility of further consolidation or minor downward correction in the short term,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch for: “The trading set up suggests that a fresh round of selling is possible only after the dismissal of 17800 support level. If the index trades above 17800 then it could retest the level of 18100- 18150. On the flip side, below 17800, a quick intraday correction is not ruled out. Below which, it could slip till 17700-17650,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Bank Nifty has support at 40700 levels while resistance at 41700 levels, according to technical charts.

IPO watch: Harsha Engineers IPO was subscribed 10.35 times on day two. The reserved portion of non-institutional investors witnessed a subscription of 24.91 times. Retail Investors saw a robust demand and was subscribed 9.14 times. The employee portion was subscribed 6.34 times. The qualified institutional buyer portion was subscribed 1.63 times. The issue kicked off for subscription on Wednesday, September 14, and will close today (September 16).

Also Read: Sensex, Nifty fall for 2nd straight day on weekly F&O expiry; Bank Nifty looks bullish, use buy on dips

Stocks under F&O ban on NSE: Indiabulls Housing Finance and RBL Bank are the two equities under the NSE F&O ban list for September 16. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.