2. RELIGARE
• Religare Enterprises Limited (REL) is a financial services group
headquartered in New Delhi, India
• It offers brokerage, health & life insurance, asset
management, Small and medium enterprises (SME) lending,
wealth management, institutional equities and investment
banking services.
• Religare also has offices in Hong Kong, Singapore, the United
States, the United Kingdom, Japan, the Middle East and Sri
Lanka.
3. COMMODITY….???
• A commodity is any good or service produced by human labor and
offered as a product for general sale on the market.
Commodity market facilitates trading in various Commodities.
• Spot Market and Derivative Market.
• Spot: Against Immediate Delivery only
• Derivative : Futures instruments
5. History of commodity
Chicago businessman formed CBOT in 1848
In 1898 Chicago Mercantile Exchange start trading on Future
contract
For spot market Forward market commission(FMC) setup in 1953
In 1875 establishment of cotton trade association
4 National level exchanges MCX,NSDEX,NMCE,ICEX
6. Commodity Exchanges
There are 24 commodity exchanges in India
The three major exchanges are:-
• Multi Commodity Exchange of India Ltd. (MCX)
• National Commodity and Derivative Exchange. (NCDEX)
• National Multi Commodity Exchange. (NMCE)
8. Fundamental Analysis
• In a market economy, price is determined by the
interaction of supply and demand.
• Price movements in commodities using fundamental
analysis can be broken down into these simple formulas:
• Demand > Supply = Higher Prices
• Supply > Demand = Lower Prices
9. Technical Analysis
• Technical Analysis is a great tool used for forecasting
future prices and trends for short term investors.
• Technical analysis is the attempt to forecast stock
prices on the basis of market-derived data.
• They are looking for trends and patterns in the data
that indicate future price movements.
11. Rate Of Change(ROC)
• The Rate-of-Change (ROC) indicator, which is also referred to
as simply Momentum, is a pure momentum oscillator that
measures the percent change in price from one period to the
next.
Calculation
• ROC = [(Close - Close n periods ago) / (Close n periods ago)] *
100
12. Simple Moving Average
• A simple moving average is formed by computing the average
price of a security over a specific number of periods.
• Most moving averages are based on closing prices. A 5-day
simple moving average is the five day sum of closing prices
divided by five.
Below is an example of a 5-day moving average evolving over three days
• Daily Closing Prices: 11,12,13,14,15,16,17
• First day of 5-day SMA: (11 + 12 + 13 + 14 + 15) / 5 = 13
• Second day of 5-day SMA: (12 + 13 + 14 + 15 + 16) / 5 = 14
• Third day of 5-day SMA: (13 + 14 + 15 + 16 + 17) / 5 = 15
14. Soybean & Corn
• 2006-2008 -Between 2006 and 2008 average world prices
increase for corn by 125% and soybeans by 107%.
• 2009-2010- The prices for the 2009 corn crop continue to
slowly climb as corn demand increases in 2010 & soybean has
slightly gone down.
• 2013-2014-The prices for soybean has high in 2013 and corn
prices has decreased in 2013.
• The price for soybean will be high but corn prices would
decreased in 2014.
15. News on soybean & corn
• The new government sets the prices to safeguard farmer
incomes and provides subsidies on sales of grain and cooking
oil to the poor.
• The minimum rates of corn & soybeans may be kept at levels
now said the officials, citing the panel recommendations.
• The government buys black soybeans at 2,500 rupees per 100
kilograms, yellow soybeans at 2,560 rupees, and corn at 1,310
rupees.
20. Natural Gas & Crude oil
• 2008-2012-The price of natural gas i.e LPG & CNG had
increased & there was an increase in fuel costs due in large
part to a worldwide increase in demand for crude oil.
• 2013-2014-India was the fourth-largest consumer of crude oil
and petroleum products in the world in 2013, after the United
States, China, and Japan. The country depends heavily on
imported crude oil, mostly from the Middle East.
21. News on Natural Gas & Crude oil
• The BJP, elected as the majority party in May 2014 to govern
India in the following five years, faces challenges to meet the
country’s growing energy demand by securing affordable
energy supplies and attracting investment for infrastructure
development.
• Highly regulated fuel prices for consumers, fuel subsidies that
are shouldered by the government and state-owned upstream
companies, and inconsistent energy sector reform currently
hinder energy project investment.
26. Gold & Silver
• 2008-2012-Between 2008 and 2012, the value of gold
increased dramatically, as is evidenced by the 101.1-percent
surge in the Producer Price Index (PPI) for gold..
• In 2008 to 2012 –The silver market dropped from a high of
close to $21 per ounce to a low of $9 per ounce, which is
around a 60% drop in the span of 8 months.
• 2013-2014-The silver and gold price has increased from 2013
& it would continue till 2014.
27. News on Gold & Silver
• The government surprised bullion markets by keeping the
import duty on gold and silver unchanged at 10 per cent in its
Union Budget for 2014-15.
• It has disappointing traders who had expected a relaxation of
the nation's tough bullion import curbs.
• India is the world's second-largest consumer of the precious
metal and it imports nearly all of its gold.
