GOLD - SILVER

BULLION AS PER EXPECTATION DIPPED YESTERDAY TODAY ALSO MORNING MKT WILL BE FLAT BUT PRESSURE WILL MOUNT GOLD BELOW 1188$ LOOK TO TEST 1172$
AND SILVER EYEING BASEMETAL BELOW 17.70$ CAN TEST 17.32$

CRUDE

CRUDE A JUMP TILL 3660-3670 CAN BE SEEN BUT 78$ WILL BE CRUCIAL

COPPER

COPPER MORNING A JUMP TILL 312 CAN BE SEEN EVE LOOK WEAK ON DIP IN

NICKEL

NICKEL A JUMP TILL 905 CAN BE SEEN SELL THERE FOR TGT 890 AGAIN

PEPPER

PEPPER A BREAK BELOW 20480 CAN DRAG THE MARKET ON PROFIT BOOKING

MENTHOL

MENTOL BELOW 688 LOOK TO TEST 680-672 LEVEL

RUPEE

RE CAN DIP TILL 47.02 LEVEL.

TODAYS MARKET CALLS

AUG @ 312.50-313.50 SL 315.60 TGT 310.50-308.40-306.50.MCX

BUY ZINC JULY @ 85 SL 84 TGT 86.20-87.50.MCX (EVE WEAK)

BUY NICKEL JULY ABV 898 SL 894 TGT 903-907.50-910.MCX

SELL NICKEL JULY @ 910-912 SL 918 TGT 904.50-898-892.50.MCX

BUY GUAR AUG ABV 2570 SL 2540 TGT 2595-2618.NCDEX

BUY PEPPER AUG @ 20550 SL 20450 TGT 20640-20720-20850.NCDEX

SELL MENTHOL JULY BELOW 682.50 SL 689 TGT 678-673.80-670.MCX

BUY SOYABEAN AUG @ 2035 SL 2015 TGT 2050-2068.NCDEX

BUY CHANA AUG @ 2350-2360 SL 2325 TGT 2380-2405.NCDEX

BUY TMC AUG @ 14550 SL 14450 TGT 14620-14700-14825.NCDEX

SELL JEERA AUG BELOW 14460 SL 14520 TGT 14400-14320-14250.NCDEX

BUY NAT.GAS JULY @ 210 SL 207.50 TGT 215.50-218.80-222.MCX

BUY REF.SOYA @ 469 SL 467 TGT 472-474.50.NCDEX

BUY RMSEED AUG @ 542.50 SL 540 TGT 545.50-549.NCDEX

Indian overnight indexed swap (OIS) rates edged lower on Monday on profit-booking after a facility for banks to borrow from the RBI twice a day, which was to end on Friday, was extended for two more weeks. The second liquidity adjustment facility eased upward pressure on the inter-bank call money rate, based on which the fixed leg of an OIS contract is determined, prompting investors to cut their recent paid positions. The most actively traded one-year swap rate ended at 5.76 per cent, after falling to 5.75 per cent intra-day, and from 5.77 per cent at close on Friday. The one-year swap rate had jumped 16 basis points from its close on Wednesday to hit a
20-month high of 5.80 per cent on Friday. The benchmark five-year rate closed Monday at 6.81 per cent, down two basis points from its previous close.

International ratings agency Moody's downgraded the Republic of Ireland's sovereign debt rating, citing worsening public finance situation and weak growth prospects. The agency cut the rating by one notch to Aa2 From Aa1. The downgrade comes a day before the Irish government is holding an auction of 6-year and 10-year bonds. However, Moody's raised its outlook on the ratings of Ireland's debt to stable from negative as it sees upside and downside risks to be broadly balanced. "Today's downgrade is primarily driven by the Irish government's gradual but significant loss of financial strength, as reflected by its deteriorating debt affordability," said Dietmar Hornung. The general government debt to GDP ratio was at 64% at the end of 2009, up from the pre-crisis level of 25%, and is continuing to rise.

India's foodgrain output in the crop year ended June 30 is estimated to have fallen 6.9% from the previous year to 218.2 million metric tons, as poor rains last year shrank summer-sown crops, data released by the federal farm ministry showed Monday. India harvested 234.47 million tons of foodgrains in 2008-09. The country's wheat harvest will likely have risen marginally from a year earlier to 80.71 million tons in 2009-10, while the rice harvest is expected to have fallen by 10.13% to 89.13 million tons. Rice and wheat are the two main staple grains in the country.

Aluminium exports may rise by year-end: India’s aluminium exports are likely to pick up within the next two quarters due to falling inventories at the London Metal Exchange (LME) and revaluation of the Chinese yuan. Currency float by China will have a positive impact on exports, but may not affect growth substantially. However, aluminium demand in the international market is sound and will get support from the decreasing inventory of the metal at LME. Aluminium prices were hit due to the sovereign debt crisis in some European nations. Prices, which reached close to $2,316 a tonne for three-month delivery in April, had fallen 16 per cent to $1,930 per tonne in June. At present, aluminium for three-month delivery is around $2,000 per tonne. According to market news, UC Rusal is planning to launch aluminium ETF next year, while Swiss commodity trader Glencore is also expected to come up with such a product.

Mustard crop is expected to be lower at five million tonnes (as of now) this year as compared to six million tonnes last year in the rabi season due to higher Minimum Support Price (MSP) announced for crops like pulses. However, a clearer picture will emerge in the first week of August, the official said. As of now, we have observed that mustard crop is expected to be lower at five million tonnes as compared to last year during the rabi season due to higher Minimum Support Price announced for crops like pulses. area under coverage dropped 5-10 per cent this year from a million hectares last year. On edible oil, he said "edible oil prices are likely to come down 5-10 per cent due to duty free imports of crude palm oil.