MCX Gold contract of August month is trading in the range 29,150 – 29252. The support for mcx gold august is most likely to seen in the range 29,223 which may slip to touch the below level of 29,150 & Resistance is likey to be seen at 29,225 & can touch above level of 29,252. We advocate to short thr MCX Gold August contract at 29280, having stop loss of 29340, & target of 29150.
Since last couple of weeks the luminosity of trading of precious metal gold is decreasing consistently in the bullion market. Traders are expecting that the investors will back out from the gold investment. They are most likely to go for the currency investment.If we see the global trend of the gold has been on decreasing trend then too the gold trend in India could not touch the such low levels. Earlier in 1999 the gold fell for the first time on the global cues. According to the market experts the global economic conditions are quite responsible for this situation.
On other hand the Indian government’s change in the import policy also affected the gold trading in the market. According to official facts the import of precious metal gold decreased by 37% in the first quarter of this current financial year.This condition of gold was not only in the domestic market but the overseas market too.
Mentha Oil Tips Support & Resistance Level For today
Support for the Menthol oil is between 1319.7-1297.3 and Resistance in between 1375.4-1408.7.
NCDEX Jeera Tips Support & Resistance Level For today
Support for Jeera is in between 15887-15503. Resistance 16462-16653.
MCX Crude Oil Support & Resistance Level For today
Buy crude oil around Rs 5,050 per barrel with stop loss of Rs 4,990 & Target of Rs 5,100-5,150 per barrel.
MCX Aluminium Support & Resistance Level For today
Buy Aluminium at Rs 105.50 per kilogram with a stop loss below Rs 104.20 Targets of Rs 107.
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What is Algorithmic Trading ?
It is a trading system which is basically based on the some mathematical model. It is used for trading in the commodity market. It is also known as algo trading. There is mathematical model based software in which a preset formula for buying and selling of commodities is used. All the buying nad selling of commodities are done according to formula.
The strict rules built into the model attempt to determine the optimal time for an order to be placed that will cause the least amount of impact on a stock’s price. It is mostly used by the large investors or institutional companies.
It is soon going to be introduced into the commodity market for future trading.The experts are claiming that the amrket traders and investors are not ready foir this drastic change in the market. According to market news source market is not yet not ready for the automated trading system.
What can be major benefits from this change ?
- Due to the automation of trading strategies, decisions are taken at a very rapid pace. The speed of execution has moved from milliseconds to microseconds and is expected to move to nanoseconds.
- High frequency trading (HFT) or quant-based trading can also be done with the help of this software.
- Effective intelligent integration of OMS and direct market access trading platforms
- Ensuring optimized acquisition, processing, and delivery of market data through an efficient and integrated platform.
- Enabling continuous delivery of market data with the robustness to support the needs of the traders and investors
Algo and HFT exists in good volume in India, and while the difference it makes on an individual trade is very low, it is capable of causing wildly large market movements. So far, we have not seen any real damage because of these swings, and exchanges seem to have things under control.
Now, as far as a small investor is concerned, unfortunately even if you don’t agree with the argument that HFT provide liquidity to the market, and are an essential part of the market there is not much you can do about it and you need to really focus on stuff that you do have control over.
What you can do is always place limit orders, and not sell in this kind of panic – that’s all which is in your control, and rather than fretting over half a percent I think small investors are better served focusing on things that are in their control.
Personally, I don’t see any utility in HFT and find it unfair that someone should get information before others, if only for a few milliseconds, and don’t buy the argument that they really do contribute to liquidity. The markets were working quite fine without them for decades, and that someone by virtue of their size gets an edge on other market participants seems unfair to me.
Retail investors even in India already enjoy access to the basic algo trading tools. The NSE trading platform incorporates execution algos such as the VWAP or TWAP. To secure better prices for your trades, all you need to do is to ask your broker to use them on your behalf.
MCX Crude oil is trending continuously on lower side in the market. The crude oil is showing a sluggish trend in the market. At present the crude oil is trading at the Rs 4771 in the home market.A up trend was observed on Wednesday when the stock of crude oil in United State reduced.But the worst economic situation in Europe put the selling pressure on crude oil. By the way crude oil in International market is trading with moderate losses of approximately half percent.
MCX Gold and silver are also witnessing the selling pressure in both the market domestic as well overseas.The domestic market declined slightly lower than the international market.On MCX, Gold is trading at Rs 29 257, with slight declines, while silver is 0.30 per cent fall to Rs 52 600.
All metals except nickel in base metals is trading vulnerable. MCX Nickel with 0.30 per cent at Rs 904.
MCX Trading Tips & commodity-tips for Next Session
Silver (September futures) MCX: Sell @ Rs -52,700, Stoploss – 53,000 Target – 52,200
Copper (August futures) MCX: Sell @ Rs – 423, Stop Loss – 427 Target – 417.5