Commodity Overview

1. Weekly Mcx Newsletter 18 Oct – 26 Oct 2018 HIGHLIGHT INVESTMENT RESEARCH www.highlightinvestment.com Commodity Overview INSIDETHISISSUE 1.Commodity Overview 2.Precious metal 3.Base metals 4.Energy 5.Our recommendations 6.Disclaimer Gold futures for December delivery on the Comex division of the New York Mercantile Exchange slipped 0.08% at $1,226.4 a troy ounce by 1:19 AM ET (05:19 GMT). The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.06% to 95.41 on Thursday and hit a fresh one-week high. Gold Prices Slip; Dollar Firms as FOMC Meeting Minutes Point to More Rate Hikes The most-traded November Zinc contract on the SHFE recorded at 22,560 per tonne, up 175 yuan per tonne from Wednesday’s close. Nickel was the worst performer among the base metals this morning, with the metal’s most-traded January contract on the SHFE falling to 101,660 yuan ($14,677) per tonne as at 11.16am Shanghai time, down by 1,480 yuan per tonne from Wednesday’s close. Oil Trades Below $70 as Stockpile Gain Counters U.S.-Saudi Row West Texas Intermediate for November delivery traded 8 cents higher at $69.83 a barrel on the New York Mercantile Exchange at 12:23 p.m. in Singapore. The contract declined $2.17 to $69.75 on Wednesday. Total volume traded was about 9 percent below the 100-day average.

2. Highlight Investment Research Page 2 Precious Metals Gold prices slipped while the dollar gained on Thursday after the minutes from the latest Federal Open Market Committee meeting reinforced expectations of a tighter U.S monetary policy. Gold futures for December delivery on the Comex division of the New York Mercantile Exchange slipped 0.08% at $1,226.4 a troy ounce by 1:19 AM ET (05:19 GMT). "Gold is closely tracking both the U.S. dollar and equities, more so the dollar," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong. The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.06% to 95.41 on Thursday and hit a fresh one-week high. Gold prices edged lower as the US Dollar rose while the priced-in 2019 rate hike path implied in Fed Funds futures steepened. That reflected a hawkish tone in minutes from September’s FOMC meeting. Officials were unanimous in their support for gradual tightening and some signaled that rates may need to rise beyond the “long-run” level, implying that policy might need to become pro-actively restrictive. Support and Resistance Our Recommendations Column1 GOLD RESISTANCE2:32320 RESISTANCE2:39400 RESISTANCE1:32040 RESISTANCE1:39040 SUPPORT1:31680 SUPPORT2:31270 Column2 SILVER SCRIPT GOLD SIVLER POSITION LEVEL SELL SELL TARGET1 TARGET2 TARGET3 STOPLOSS 31720 31560 39050 38840 31960 39280 31270 38360 32310 39510 SUPPORT1: 38730 SUPPORT2: 38320

3. Highlight Investment Research Page 3 The broad-based weakness in the base metals follows a rebound in the dollar after the minutes from the US Federal Open Market Committee’s (FOMC) September meeting implied a further interest rate rise in December. FOMC minutes revealed a number of officials want to push above neutral in order to minimize the risk of inflation running above 2% and ‘significant financial imbalance. The FOMC minutes implied a high possibility of a fourth interest rate increase this year in December, which caused the dollar to strengthen and in turn put downward pressure on base metals prices. The dollar index stood at 95.66 as at 10.17am Shanghai time, up from 95.12 at roughly the same on Wednesday. Nickel was the worst performer among the base metals this morning, with the metal’s most-traded January contract on the SHFE falling to 101,660 yuan ($14,677) per tonne as at 11.16am Shanghai time, down by 1,480 yuan per tonne from Wednesday’s close. The most-traded November Zinc contract on the SHFE recorded at 22,560 per tonne, up 175 yuan per tonne from Wednesday’s close. Support and Resistance Our Recommendations Column1 Column2 SCRIPT ZINC NICKEL POSITION BUY SELL LEVEL 195.60 917.00 TARGET1 TARGET2 TARGET3 STOPLOSS 198.40 201.20 902.60 892.00 ZINC RESISTANCE2: 203.40 RESISTANCE1: 200.70 SUPPORT1: 193.50 SUPPORT2: 190.20 NICKEL RESISTANCE2:924.40 RESISTANCE1:947.00 SUPPORT1: 901.20 SUPPORT2: 885.60 204.80 872.00 190.40 947.00

4. Highlight Investment Research Page 4 Energy Oil inched up on Thursday amid ongoing tensions over the death of a prominent Saudi journalist, with prices steadying after a big drop overnight due to a jump in U.S. crude stockpiles. U.S. West Texas Intermediate crude for October delivery was up 12 cents, or 0.2 percent, at $69.87 a barrel by 0413 GMT, after falling 3 percent in the previous session to settle below $70 for the first time in a month. Front-month London Brent crude for December delivery was up 13 cents, or 0.2 percent, at $80.18, having ended down 1.7 percent. Inventories rose sharply even as U.S. crude production slipped 300,000 barrels per day (bpd) to 10.9 million bpd last week due to the effects of offshore facilities closing temporarily for Hurricane Michael. U.S. lawmakers pointed the finger at the Saudi leadership over the disappearance of prominent Saudi critic and journalist Jamal Khashoggi, suggesting sanctions could be possible. Saudi Arabia denies that it had any role in Khashoggi's disappearance. Natural gas markets continue to go sideways as we are trying to digest the gains that we had recently seen. The explosive move to the upside was very important, as it was in the usual manner at the end of the year. The $3.20 level is the beginning of significant support down to the $3.15 level below, and I think that any dip towards that area is probably short term buying opportunity. Support and Resistance Our Recommendations Column1 CRUDE OIL RESISTANCE2: 5340 RESISTANCE1: 5207 SUPPORT1: 5120 SUPPORT2: 5024 SCRIPT CRUDE POSITION SELL LEVEL 5195 TARGET1 TARGET2 TARGET3 STOPLOSS 5130 5055 4967 5310

5. Highlight Investment Research Page 5 Disclaimer The information and views in this report, our website & all the service we provide are believed to be reliable, but we do not accept any responsibility (or liability) for errors of fact or opinion. Users have the right to choose the product/s that suits them the most. Investment in Stocks has its own risks. Sincere efforts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it & takes no responsibility whatsoever for any financial profit s or loss which may arise from the recommendations above. The stock price projections shown are not necessarily indicative of future price performance. The information herein, together with all estimates and forecasts, can change without notice. Highlight Investment Research does not purport to be an invitation or an offer to buy or sell any financial instrument. Analyst or any person related to Highlight Investment Research. might be holding positions in the stocks recommended. It is understood that anyone who is browsing through the site has done so at his free will and does not read any views expressed as a recommendation for which either the site or its owners or anyone can be held responsible for. Any surfing and reading of the information is the acceptance of this disclaimer. Our Clients (Paid or Unpaid), any third party or anyone else have no rights to forward or share our calls or SMS or Report or Any Information Provided by us to/with anyone which is received directly or indirectly by them. If found so then Serious Legal Actions can be taken. Any surfing and reading of the information is the acceptance of this disclaimer. All Rights Reserved. www.highlightinvestment.com