View on Gold and Guarseed......

1. Commodity Insight
29th
May, 2013
• Equities • Commodities • Wealth • Mutual Funds • Insurance 1
Gold
Fundamentally, Gold in COMEX made low of
$1337 on 20
th
May, but price jumped to high of
$1414 in next two sessions. Many investors are
convinced with the Fed’s pumping money into the
financial system will eventually create high
inflation. They buy gold hoping that prices for the
metal will keep up with other prices when they
rise. Fed Chairman Ben Bernanke explained that
the Fed would still consider slowing the pace of its
bond purchases in the coming months if the
economy improved enough.Indian Gold futures
edged higher from their lowest level in a month,
helped by global leads and a weaker rupee at
home, the primary dealers of bullion, awaited
policy direction after the government restricted
imports on a consignment basis. India, the world's
biggest buyer of the metal, banned Gold imports
on a consignment basis except for Jewellery
exporters and in January raised the import duty on
Gold by 50 percent to 6 percent.
Technically, Gold has been moving down from past few months i.e. from $1798 on higher side to recent low of
$1321 on downside, a correction of approx 25%. COMEX Gold has major resistance at $1470, so further
bullishness in prices can be seen once when prices give clear breakout above these levels. Well on the other
side, MCX Gold has major resistance at 27400 levels. The overall view on Precious Metals remains bearish till
the time prices are trading below these resistance levels. So in short term if there is any upside move in prices
than it should be used as selling opportunity for the target of Rs.25400 and Rs.24500.
In long term Gold prices are expected to move in a range of $400 i.e. $1180 on lower side to $1570 on higher
side. At present Comex Gold has major support at $1280 and on higher side it has major resistance at $1470.
For next few months, Gold looks weak on Chart and also at present its trading near resistance levels, so it’s
better to initiate Sell position for the downside target of $1280 in COMEX and Rs 24500 in MCX.
Fundamentally, after a ban of 13 months, the forward market commission allowed the trading of Guar gum and
its seed from 14
th
May. As the future trading resumes, farmers in Rajasthan are upbeat of getting high returns of
their produce this season. Lured by high margins, the total area under the plantation is also likely to increase in
the areas of Sriganganagar and Hanumangarh districts. Rajasthan where it is predominantly grown accounts for
80% India's production. Farmers across the board prefer to grow Guar seed as it is less labour intensive crop
and requires very small amount of water. Riding on the intense demand from oil and gas industry, the
commodity emerged as country's top farm export. Latest government data indicated that guar exports have shot
up nearly 139% on a year-on-year basis between April and January with shipments of about Rs. 26,842 cr.
Commodity Rate Rate Up / Down
29.05.13 28.05.13
Gold 1385.50 $ 1379.95 $ 05.55 $
Silver 22.23 $ 22.25 $ - 0.02 $
Crude 94.64 $ 94.77 $ - 0.13 $
USDINR 56.24 55.94 0.30
Turnover of 28.05.13
Exchange Turnover (Cr.)
MCX 61104
NCDEX 3886
Guarseed

2. Commodity Insight
29th
May, 2013
• Equities • Commodities • Wealth • Mutual Funds • Insurance 2
Ahead of the possibility of increase in Guarseed acreage the state government is making efforts to stock seeds
in sufficient quantity. Last time with sudden spurt in prices, government faced some difficulty in making seeds
available to all the farmers. However this year situation remains under control.
Technically, Guarseed prices are moving in
downward direction and the same can continue
in short term. Guarseed has support at 8000
levels and having psychological resistance at
10000 levels. Also, prices are trading below
200DMA which indicates bearishness in prices.
Buying is not suggested at these levels as we
are expecting correction in short term.
In Long term, Guarseed should give sharp
correction. If prices are able to break the levels
of 8000 on closing basis then a sharp fall in
prices can be seen till 6500 levels. So one can
initiate sell position below 8000 levels or on rise
in prices till Rs.9500 or Rs.9800 should be used
as selling opportunity with a stop loss to be kept
around Rs.10500 for the downside target of
Rs.7200 and Rs.6500. Overall, we hold our
bearish view in Guarseed for next three to four
months.
Gold Chart

3. Commodity Insight
29th
May, 2013
• Equities • Commodities • Wealth • Mutual Funds • Insurance 3
Gold Trading Range
Gold today’s trading levels are 26200-26700
Intraday Support @ 26200-26370 and Resistance @ 26550-26700
Intraday Trend Sideways, Buy on dips & Sell on rise....…
Gold Buy @ 26370 SL 26200 TGT 26550….
Open Calls
Date
Type
of
Call
Commodity Initiated Price
Stop
Loss
Target
Closing
Price
Comments
Spread Calls
Date
Type
of Call
Commodity
Initiated
Price
Stop
Loss
Spread
Target
Spread
Comments
Report by: -
Sumeet Bagadia (Head - Commodities & Currencies Research) sumeet.bagadia@destimoney.com
Yogesh Khatri (Senior Research Analyst) yogesh.khatri@destimoney.com
Kunal Kame (Research Associate) kunal.kame@destimoney.com
Madhav Bana (Research Associate) madhav.bana@destimoney.com

4. Commodity Insight
29th
May, 2013
• Equities • Commodities • Wealth • Mutual Funds • Insurance 4
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