MARKET OUTLOOK OF COMMODITY 20 JAN 2016

“CRUDEOIL ALMOST HIT FINAL TGT MADE HIGH OF 2040”

SELL LEAD ABOVE 110 TG 109,108 SL 111

Market Review & Outlook: Metals recovered from their lows after the slew of Chinese numbers remained a notch lower than the expectations, but were still able to subside the recessionary fears in the economy. Hopes of fresh stimulus lifted the sentiments further and helped the metals to close on a positive note, although the gains remained limited and most of the metals lost most of the ground by closing. In Europe, Euro zone Final CPI and final core CPI at 0.2 percent and 0.9 percent respectively were in line with forecasts. ZEW economic sentiment at 22.7 missed the expected 27.9 but German ZEW economic sentiment at 10.2 was better than the predicted 8.2. Earlier, the EU current account at 26.4 billion Euros was stronger than the forecast 19.3 billion Euros. Japanese manufacturers' morale slipped in
January and is expected to stay subdued over the coming three months, a Reuters poll found, in a sign that fears of a deepening China-led global slowdown and market turmoil are taking their toll on exporter confidence.

For the day we recommend selling in Zinc, nickel and Al, while a range bound trade is expected in copper and lead.