Commodity Prices at MCX under pressure
Oil touched a new high of $113 per barrel on Tuesday. Technical experts believe that Oil may touch $115 level soon and we can see some correction after a week from now. Inflation has gone out of control of Indian Government. Many illegal stores were raided by government officials recently to check any black marketing in commodities.
Commodity prices were down sharply on Tuesday with major commodities plunging on MCX after the news of raids. Among spices, Jeera was down followed by Black Pepper. Channa Dal prices were also trading much lower compared to earlier close.
Technical experts believe that the prices may remain weak for the current week. As government has decided to take drastic measures to control inflation and prices of commodities, traders are exiting their long positions. This has effected the prices for some commodities very adversely.
Traders are advised to remain cautious for next two weeks. Keep exiting positions at higher levels and reduce the exposure.