Commodities Trading के ज़बरदस्त Fundamental Analysis | Abhishek Kar

Summary

This video educates viewers on key factors influencing commodity trading, such as US employment data, crude oil inventory reports, and global macroeconomic indicators. It introduces trading tools like futures and options, highlighting the potential for quick profits in a volatile market. The presenter recommends the DHAN app for easy commodity trading, emphasizing its user-friendly interface and features like cash-settlement and margin trading. The video also touches on the impact of currency values on commodity prices, using gold as an example, and identifies natural gas as the most volatile commodity, inviting traders to explore its opportunities.

Takeaways

• 📈 Pay attention to US employment data, as it can significantly influence the commodity market, especially gold prices.
• 📉 An increase in unemployment can lead to a fall in the foreign market and an increase in gold demand as a safe-haven asset.
• 📊 The inventory of crude oil, released every Wednesday at 8 PM, is a key factor in the fluctuation of oil prices.
• 💼 Futures and options are tools that can be used to capitalize on sudden market movements in commodities.
• 📌 Understanding the movement of options is crucial as it applies across all asset classes, including commodities.
• 🏆 Commodities are categorized into three major indexes: bullion, metal, and energy, offering diverse trading opportunities.
• 📱 For trading commodities, the DHAN APP provides a user-friendly interface and access to options data.
• 💰 Unlike equities, many commodities are cash-settled, requiring less upfront capital and offering trading until 11:30 PM.
• 📉 The stock market downturn can be an opportunity in commodities, as seen in the case of crude oil prices rising during such events.
• 🌐 Global macro-data, including Fed Rate actions and PMI data, have a substantial impact on the commodity market.
• 🔢 Industrial metals are heavily influenced by Chinese demand, which accounts for 50% of the consumption.
• 🌐 Currencies also affect commodity prices; for example, a stronger currency can increase the demand for gold as investors seek safety when the USD falls.

Q & A

What is the significance of US employment data in the commodity market?

US employment data, released every Friday, is crucial as it indicates how the commodity market will react. An increase in unemployment can cause the foreign market to fall and lead to an inverse effect, prompting people to invest in gold, thus increasing its demand and prices.

How does the release of crude oil inventory data impact crude oil prices?

The inventory data of crude oil, typically released around 8 PM every Wednesday, significantly influences crude oil prices as it often leads to price shifts during that time, providing traders with opportunities for profit from sudden market moves.

What financial instruments can be used to capitalize on market movements in commodities?

Futures and options are financial instruments that can be used to capitalize on market movements in commodities. Options allow traders to buy calls if they believe the price will rise or puts if they think it will fall, enabling profits in a short time frame.

What are the three major commodity market indexes mentioned in the script?

The three major commodity market indexes mentioned are bullion, metal, and energy, which are asset classes that traders can trade upon.

How does the DHAN APP facilitate commodity trading?

The DHAN APP offers a user-friendly interface for trading a wide range of commodities, including options and futures. It also provides option data for commodities and allows traders to use leverage and pledge equities to trade commodities.

What is the difference between commodity trading and equity trading in terms of settlement?

Unlike equities, where physical delivery is often required on expiry, many commodities are cash-settled. This means traders do not need to take physical possession of the commodity, simplifying the trading process.

What is the advantage of trading commodities in terms of upfront market payment compared to equities?

Commodity trading requires a lower upfront market payment compared to equities, with traders able to get commodities on a margin of 3-4%, making it more accessible for those with limited capital.

How does the trading hours for commodities differ from those for equities?

Commodity trading can continue until 11:30 PM, which is later than the typical trading hours for equities, providing more opportunities for traders to participate in the market.

What macroeconomic factors can influence the commodity market according to the script?

Macroeconomic factors such as the Federal Reserve's interest rate decisions, PMI data, and actions of central banks can significantly impact the commodity market. Traders who pay attention to these factors can potentially make profitable trades.

How does the demand from China affect industrial metals in the commodity market?

China's demand greatly influences the prices of industrial metals because it consumes about 50% of the global supply, making it a key driver of the market for these commodities.

What role do currencies play in affecting commodity prices?

Currencies affect commodity prices as changes in the value of a currency can impact the demand for commodities. For example, when the US dollar falls, investors may shift their money to gold, increasing its value due to its status as a safe-haven asset.

Which commodity is considered the most volatile according to the script?

Natural gas is identified as the most volatile commodity in the script, making it an asset of choice for traders who are accustomed to dealing with high levels of market volatility.