Closing Update of Indian Share Market of 3 December'2018

Commodity

Market Wrapup

MCX Outlook

Base Metals fall sharply; Short-term outlook weak

Base Metals decline sharply in intraday despite Chinese inflation beating expectations in October. Nickel is the worst performer currently losingover three percent to trade at 794.90 whereas Copper is at 440.65, down 4.45 or a percent currently.

After the Chinese customs report showing that imports of refined copper dropped on a monthly basis, the government reported that the inflationgrew at a steady pace in October beating expectations at 1.9% compared to 1.6% in the previous month.

The market seems to have taken this on a negative note as the figures on base metals consumption did not match with the solid growth figures.China has been shifting its growth policies from the commodity-centrist build in the recent months by banning and enforcing policies on basemetals import and production.

The short-term outlook on base metals remain solid but corrective price swings in the immediate term should be expected. Copper broke below a key support at 442 and a daily close below this should confirm a corrective move to 430 and possibly lower in the short term. The AL-PB-ZNtrio should also be pushing lower amidst strong volatility as selling grips the market with Nickel being the only exception. Nickel should come down but the downside should be largely limited to the metal.

Market News

Gold Prices Slip 1% but Set To Snap Three-Week Losses

Gold prices fell sharply on Friday but remained on track to snap three to three-week losing
streak amid dollar weakness.

Gold futures for December delivery on the Comex division of the New York Mercantile
Exchange fell by $13.10, or 1.02%, to $1274.41 a troy ounce.

Gold prices fell 1% intraday as investors appeared to unwind their bullish positions on the
precious metal despite ongoing dollar weakness amid fears of delay to corporate tax cuts.

U.S. Senate Republicans unveiled a tax plan on Thursday that was significantly different from the House of Representatives’ version, asthe Senate’s plan proposed a cut to the corporate rate to 20% from 35% in 2019, which differs from the GOP plan to slash the corporate rate immediately.

President Trump’s tax-reform plan, which is widely viewed as inflationary – a boon for the U.S. dollar – was widely expected to be enacted before year-end.


MCX Silver may trade between 38951-40243 levels

Technically MCX Silver is getting support at 39229 and below same could see a test of 38951 levels and resistance is now likely to be seen at 39875, a move above could see prices testing 40243.

Silver on MCX settled down -0.34% at 39507 as traders locked in profits from the precious metal's rally in the previous session, boosted by U.S. political concerns and thus a softer dollar.

U.S. Senate Republicans unveiled a tax plan that was significantly different from the House of Representatives’ version, as the Senate’s plan proposed a cut to the corporate rate to 20% from 35% in 2019, which differs from the GOP plan to slash the corporate rate immediately.

President Trump’s tax-reform plan, which is widely viewed as inflationary – a boon for the U.S. dollar – was widely expected to be enacted before year-end. Uncertainty over the tax plans also hit U.S. stock markets and helped end the longest run of global share price gains since 2003.

Expectations of lower taxes, one of President Donald Trump's key promises, have helped power the S&P more than 20 percent since the 2016 presidential election. U.S. Senate Republicans unveiled a plan which would reduce the corporate tax rate to 20% from 35% and make other significant changes to the individual tax system.