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Events to watch this week

• Trump sworn in as US president
• China’s Xi: No one will win a trade war
• IMF sees fast US growth
• Draghi: ECB rates to stay low for an extended period

The Week ahead:

• Global flash purchasing managers’ indices are released on Tuesday, 24 January
• US existing home sales data are reported on Tuesday, 24 January
• The UK Q4 gross domestic product is released on Thursday, 26 January
• The US Q4 GDP is released on Friday, 27 January

For the week,Global equities were little changed on the week as markets awaited clearer policy signals from the incoming US administration. Steady US 10-year-note yields of 2.42% greeted the new president, virtually the same yield that prevailed when Barack Obama was first sworn in eight years ago. West Texas Intermediate crude fell slightly from a week ago, to $52.60 per barrel from $53, while global Brent crude dropped to $55.40 from $56. Volatility, as measured by the Chicago Board Options Exchange Volatility Index (VIX), rose to 12.4 from 11.20 a week ago.

NIFTY- 8,349.35
CRUDE OIL-Rs 3,642barrel
GOLD-Rs 28,612 gram
Rs/$-Rs 68.18

MARKET ROUND UP

Indian equity benchmark indices the S&P BSE Sensex and the Nifty 50 index closed the week ended Friday, 20 January 2017 on sour note. The trading for the week was lacklustre during four trading sessions from Monday, 16 January to Thursday, 19 January 2017, with a range-bound trading, amid mixed global cues. Albeit, a noticeable slide on the bourses on Friday, 20 January 2017, pulled key indices lower.

The slide on the last trading session of the week is attributable to the caution ahead of US President-elect Donald Trump's inauguration later in the global day on Friday, 20 January 2017. Markets across the globe await a clear cut direction from Trump on US' economic policies.

The Sensex lost 203.56 points or 0.74% to settle at 27,034.50. The Nifty declined 51 points or 0.6% to settle at 8,349.35.

In the broader market, the BSE Mid-Cap index shed 0.43%, with the decline in this index lower than the Sensex's decline in percentage terms. The BSE Small-Cap index bucked the market trend by advancing 0.56% during the week.

Macro Economic Front:

On the Economic Front,data showed during market hours on Monday, 16 January 2017 that inflation based on wholesale price index (WPI) rose 3.39% in December 2016 from 3.15% in November 2016. Another data showed after market hours on Friday, 13 January 2017 that India's trade deficit declined 9.9% to $10.37 billion in December 2016 over December 2015.

The International Monetary Fund (IMF) on Monday, 16 January 2017, cut India's economic growth estimate for 2016-17 to 6.6% from its earlier projection of 7.6% due to the impact of the government's move to scrap some high value currency notes in early November.

Major Action &Announcement:

TCS rose 1.57%. The company announced a partnership with Aurus, Inc., a global leader in innovative payments technology, to deliver payment solutions for retailers using TCS OmniStore, a first of its kind unified store commerce platform. The announcement was made after market hours on Monday, 16 January 2017.

Infosys declined 2.7%. The company announced its internal carbon price at $10.5 per ton of CO2e, at an event organized by the Carbon Pricing Leadership Coalition (CPLC) in Zurich. A significant milestone for Infosys, the price will be applicable for a period of two years and will represent the cost of decarbonizing 1 ton of CO2e. The announcement was made after market hours on Monday, 16 January 2017.

State Bank of India (SBI) advanced 0.04%. The bank said that it concluded the issue of $500 million fixed rate senior unsecured notes having a maturity of 5 years at a coupon of 3.25% payable semi-annually. The announcement was made after market hours on Tuesday, 17 January 2017.

Maruti Suzuki India fell 0.51%. The company launched the much awaited premium urban compact vehicle for the millennials, IGNIS. The announcement was made after market hours on Friday, 13 January 2017.

Mahindra & Mahindra (M&M) lost 2.1%. The company announced its foray into Turkey, through the acquisition of HisarlarMakinaSanayiveTicaretAnonimSirketi (Hisarlar), a farm equipment company based in Turkey. The announcement was made during market hours on Friday, 20 January 2017.

Coal India lost 3.51%. The board of directors of Central Coalfields, a subsidiary of Coal India approved revision of coking coal prices on 14 January 2017. The increase in price is done by subsuming the washery recovery charge (WRC) which was being charged separately in the case of non-linked washery grade coking coal keeping in view the observation of ADRM. The announcement was made on Saturday, 14 January 2017.

NTPC fell 0.32%. The company said that first unit of 250 megawatts (MW) of Nabinagar Thermal Power Project of 1000 MW capacity of Bhartiya Rail Bijlee Company, BRBCL-a subsidiary of NTPC was declared on commercial operation from 15 January 2017. The announcement was made during market hours on Monday, 16 January 2017.

Tata Steel advanced 1.84%. CARE Ratings downgraded the credit ratings of the company's unsecured non-convertible debentures (NCDs), long term unsecured rupee loan and unsecured subordinated perpetual securities by 1 notch citing uncertainties relating to the disposal/restructuring of Tata Steel UK business. The announcement was made at the fag end of market hours on Thursday, 19 January 2017.

Global Front:

In Overseas Markets,UK Prime Minister Theresa May in a speech on Tuesday, 17 January 2017, indicated Britain will press for a firm exit from the European Union. May said she'll put the terms of the country's exits from the EU to a parliamentary vote. Setting out a vision that could determine Britain's future for generations and the shape of the EU itself, May answered criticism that she has been coy about her strategy with a 12-point plan for what has been dubbed a hard Brexit.

Among economic data in US, industrial output accelerated last month at its strongest pace in two years. The housing-market index from the National Association of Homebuilders showed that builder sentiment slipped in January after notching its highest reading of the business cycle in December. Despite the drop, the January number was the second-highest reading of the cycle.

The European Central Bank held rates and its bond-buying program steady at its Thursday's (19 January 2017) meeting. The bank's President Mario Draghi said the governing body stood ready to intervene further if conditions worsened.

Global Economic News:

Trump vows to restore America’s promise
In his inaugural address, President Donald Trump pledged to transfer power from Washington, D.C., back to the American people. He called for defending the US’s borders while rebuilding its infrastructure. Every decision, whether on trade, taxes or immigration, will be made to benefit American workers and families, he said. While he expects other nations to put their interests first as well, he said the United States will reinforce old alliances and build new ones.

China’s Xi warns on trade war risks
In the first appearance by a Chinese leader at the World Economic Forum in Davos, Switzerland, President Xi Jinping defended globalization. He cautioned other countries against pursuing protectionist policies, adding that no one will emerge as a winner in a trade war. On the domestic front, Xi said that the economy has entered a new normal, driven by household consumption. He affirmed a 6.7% 2016 economic growth target, in the middle of the government’s 6.5%–7% range, but the slowest since 1990.

IMF ups US growth forecast
The US economy will grow 2.3% this year and 2.5% in 2018, according to freshly revised International Monetary Fund forecasts. The IMF raised its forecast by 0.1% for 2017 and 0.4% for 2018. The global growth outlook remained steady from October estimates of 3.4% this year and 3.6% in 2018. The fund estimates that the global economy expanded 3.1% in 2016.

Banks heading for the Brexit?
This week, several banks announced plans to move staff out of London in the wake of Brexit, including HSBC and UBS. Meanwhile, Germany’s Handelsblatt reported that Goldman Sachs may relocate half of its London staff of 6,500. Some jobs will move to New York, while approximately 1,000 could move to Frankfurt, the paper reported. UK prime minister Theresa May this week outlined her plan to put Brexit to a vote in Parliament before triggering Article 50. She said she expects the United Kingdom to leave both the European Union’s single market and its customs union.

GLOBAL CORPORATE NEWS

Draghi says rates to stay very low even after halting asset sales
Interest rates will stay low or head even lower for an extended period, European Central Bank president Mario Draghi said on Thursday, after the Governing Council left its monetary policy unchanged. Draghi looked past a recent uptick in European inflation measures and said the ECB is ready to increase the size of its quantitative easing program, if needed. The Bank of Canada too held policy steady this week, though Governor Stephen Poloz maintained that a rate cut is an option if the Canadian economy takes a hit from more protectionist US policies. Poloz’s dovish tone sent the Canadian dollar lower. US Federal Reserve chair Janet Yellen said Thursday that the Fed is close to its goals and that she expects to hike rates "a few times” this year. Futures markets have just over two 25-basis-point hikes priced in at present. Yellen added that allowing the economy to run persistently hot would be risky and unwise.

NEW 52-WEEK HIGH BSE (A):

NEW 52-WEEK LOWS BSE (A):

MAJOR WEEKLY GAINERS IN BSE A CATEGORY:

MAJOR WEEKLY LOSERS IN BSE A CATEGORY:

Eyes will be set on the certain US economic data releases are:

Monday (23 Jan)
No Major Data
Tuesday(24 Jan)
Existing Home Sales

Wednesday(25 Jan)
MBA Mortagage Applications
Thursday(26 Jan)
Jobless Claims& New Home Sales
Friday(27 Jan)
Consumer Sentiment

Fundamental Pick of the week:

Accumulate PTC India Financial Services Ltd For Target Rs.50.00

Investment Rationale

* PTC India Financial Services (PFS) is a non-banking finance company promoted by PTC India (60% stake). PFS has been granted the status of Infrastructure Finance Company by RBI. It offers wide range of debt and equity linked financing products meeting the financing needs of power projects and is exclusively devoted to power sector.

* PFS, initially, had the largest exposure to thermal power projects at ~60% till FY12, primarily sourced as a reference from parent company PTC India. The company is now able to garner business on its own with focus on small and medium renewable power projects, which constitute 44% of the overall loan book and garner better yields.

* NIMs (~6%), ROE (~16-20%) , ROAs(~3%) have remained stable for the company . Asset quality has deteriorated over FY15 with G/ NNPAs of 3.4/2.3% in FY16 due to slip up in a couple of accounts.

Recommendation

Accumulate PTC India Financial Services Ltd @ 41-42 Stoploss 38 Target 50 CMP 41.60

Indian Market Outlook:

The Indian markets posted modest gains in the last session despite choppy trade, as investors remained optimistic of upbeat corporate earnings results. Today, the start is likely to be soft to cautious on mostly unsupportive global cues. However, markets may see recovery in latter trade and shore up with India emerging as the 'sweet spot' along with neighbour China to rev up the global economic growth at the World Economic Forum (WEF) Annual meet in Davos. Along with China, India was also applauded as a major driving force for world growth with leaders and economists emphasising the need for increased regional cooperation. IT and pharma stocks will be under pressure ahead of Donald Trump's swearing-in as US President today. There will be caution on talks of pricing pressure on pharma, and new H1B norms for IT companies. The aviation stocks will be in action, as more than three dozen airports across India, which today do not handle a single flight, may get connected under the government’s UDAN (UdeDeshKaAamNaagrik) scheme. Bids by interested airlines have been received to connect 43 such new airports for 190 routes. There will be lots of individual result reactions too, to keep the markets buzzing for the day.

TECHNICAL VIEW:

Nifty not able to go anywhere through the week and is stuck in a small range between Gann levels 8373-8465. Imp levels to watch today are 8397-8460 either side rally will happen after a long consolidation during the week. Lower supports on breach of 8397 is 8373-8348-8301. Over all the bullish trend we got from the lows of 7893 had fizzled out and to regain strength Nifty has to close the week ab 8465. There is no major support form the Nifty components except Banking and Financials which also now looks tired. 

BankNifty support 19072 and hurdle 19220. Either side will see a rally. Yesterday saw weakness and was choppy with in a range and trying to get direction.

Conclusion:

Nifty index traded sideways for most past of the passing week but steep sell-off on Friday i.e. 20th January made it settle at the weekly lowest levels. The sell off was due to Donald Trump’s inauguration as the 45th US President. Market participants were seen taking a cautious stance ahead of the same. Overall markets bias remains in favor of the bulls; hence, dips from the current levels can be utilized to accumulate good quality stocks for medium to long-term. For the up coming week, we expect Nifty index to trade in range 8250-8500. Auto and Bankex top our preferred list of sectoral pivots.

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Invest in the market just by understanding the condition of the market

Making money is not a very easy task and people should always be extra cautious while choosing their path to earn money. The money markets or the business market offer a golden opportunity to earn handsome returns, but are open for the people who invest smartly. People looking to earn effective returns should step ahead smartly and at the same time one need to be extremely cautious while moving in the currency market. Considering the conditions of the market and then stepping ahead in the world market is much simple as people can understand the importance of investing in a certain market. Investing in the market by seeking the support of the licensed experts ensure positive returns and people should first get clarity on where and how to invest.

Domestic market

The market is a place where most of the buying and selling takes place this may be the shares, funds, bonds and many more. The domestic market even helps investors to get an opportunity to invest for the short term of period. The domestic currency is the money, which is commonly used in regular transactions and the primary currency that helps in running the business smoothly. This is the basic money of the country where people can spend in the markets and get the essentials. The domestic currency market is a place where people can purchase and sell the shares and bonds as per the market rate and gain better benefits. The domestic money market is a place where people can deal or move ahead with the local money or the exclusive currency, which is mostly used in various transactions in the country.

Forex market

Whereas the Forex market is known for the exchange of foreign currency and people need to deposit money in banks. The foreign exchange involves dollars along with the currency of other countries and people can exchange or convert the dollars in to Indian rupees by following some rules. All the transactions are to be done in the certified places or banks and the rate depends on the foreign exchange rate.

·         There are various factors that owe an impact over the exchange price and people can only exchange the money based on the situation. The international Forex market mostly depends on the economic and political conditions which increase and decrease the value of the money during the exchange.

·         It is even true that buying and the selling rate of the US dollar varies as people  who like to increase their growth should be active in trade and need to consider even the simplest change in the country. In the forex market people need to par their currency with other and then enjoy exchanging depending on the rate.

·         Pairing of the different currency helps in earning better returns, but it is a must to choose the right currency combination. Mostly pronounced as the base currency and the quote currency they are used in the market as perthe provided market rate.

·         People need to exchange as per the pairs, but one unit based on the moment or changes in the market. One should be stable to withstand while the market is falling as earning better returns is easy for the one who patiently handle the situation.

Seek expert support

Whether it is a direct currency market or a forex market people who want to win need to seek the support of the professional expert. he expert service provider through a thorough research in the market and its changes help by offering tips one when and how to invest. People can gain better returns through both the market when they are extra cautious and at the same time move in a napt manner. Withstanding the risk is easy for an investor by following the guidance of the service provider who tips with the support of the research team. So people looking to earn better returns should communicate with the experts and explain the interest as this is the only way to become successful in the currency market. Look for a very strong firm and then make sure that you gain a better knowledge regarding the market and the activities which enhance in earning quality returns. The best part with the certified experts is that they offer complete updates regarding the session and this is one outstanding way to gain handsome profits.

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Events to watch this week

• December US core retail sales flat
• China reports 2016 export drop
• US small business optimism soars
• World Bank projects modest 2017 growth uptick

The Week ahead:

• US financial markets are closed for Martin Luther King Jr. Day on Monday, 16 January
• The World Economic Forum in Davos begins on Tuesday, 17 January
• The European Union reports consumer price data on Wednesday, 18 January
• The United States reports consumer price data on Wednesday, 18 January
• The European Central Bank holds a rate-setting meeting on Thursday, 19 January
• China reports retail sales and gross domestic product figures on Friday, 20 January

For the week,Global equities extended gains this week as US financial firms kicked off the Q4 earning season with solid results. US 10-year Treasury note yields were steady at 2.42%. West Texas Intermediate crude dipped to $53 a barrel from $53.90 a week ago, and Global Brent crude dropped to $56 a barrel from $56.90. The Chicago Board Options Exchange Volatility Index (VIX) was steady at 11.20.

NIFTY- 8,400.35
CRUDE OIL-Rs 3,586barrel
GOLD-Rs 28,385 gram
Rs/$-Rs 68.16

MARKET ROUND UP

The market edged higher last week, backed by positive global cues. The Sensex crossed the psychologically important 27,000 level. India's industrial production surged at 13-months high pace of 5.7% in November 2016 over November 2015, snapping 1.8% fall recorded in October 2016. The manufacturing sector's production jumped 5.5%, while mining output rebounded 3.9% after three months of decline, contributing to the increase in industrial production. The data was released by the government after market hours on Thursday, 12 January 2017.In the week ended Friday, 13 January 2017, the Sensex rose 478.83 points or 1.79% to settle at 27,238.06. The Nifty 50 index rose 156.55 points or 1.90% to settle at 8,400.35.

The BSE Mid-Cap index gained 317.31 points or 2.58% to settle at 12,639.03. The BSE Small-Cap index 249.52 points or 2.01% to settle at 12,689.85. Both these indices outperformed the Sensex.

Macro Economic Front:

On the Economic Front,Finance Minister ArunJaitley, in his address on the second day of vibrant Gujarat Global Investors Summit on Wednesday, 11 January 2017, on demonetization, said that difficult decisions initially pass through difficult phases as historic decisions have temporary pain attached to them.

Stressing the implementation of the Goods and Services Tax (GST), Jaitley said that most of the issues have been resolved, few critical issues are left which will be resolved in the next few weeks. He further added that GST Council is deliberative democracy in action and the impact of both GST and demonetization will be felt this year.

Major Action &Announcement:

Tata Steel was top gainer in the Sensex pack last week. The stock rose 6.36% to Rs 446.40 last week after the company announced that its total sales rose 27.45% to 29.94 lakh tonne in Q3 December 2016 over Q3 December 2015. The growth in sales was enabled by higher sales in the automotive segment, branded products and value-added products & scaling up of sales in new segments. The announcement was made during market hours on Monday, 9 January 2017.

Auto major Tata Motors rose 3.38% to Rs 514.65. Tata Motors Group's global wholesales rose 4% to 95,081 units in December 2016 over December 2015. The announcement was made after market hours on Tuesday, 10 January 2017. Tata Motors' subsidiary Jaguar Land Rover reported 12% rise in total retail sales to 55,375 units in December 2016 over December 2015. The announcement was made during market hours on 9 January 2017.

Software major TCS fell 1.38% to Rs 2,252. The company's consolidated net profit rose 2.9% to Rs 6778 crore on 1.5% increase in revenue to Rs 29735 crore in Q3 December 2016 over Q2 September 2016. The result was announced after market hours on Thursday, 12 January 2017. The results are as per International Financial Reporting Standards (IFRS).

Infosys' consolidated net profit rose 2.8% to Rs 3708 crore on 0.2% fall in revenue to Rs 17273 crore in Q3 December 2016 over Q2 September 2016. The consolidated net profit rose 1.5% to $547 million on 1.4% fall in revenue to $2551 million in Q3 December 2016 over Q2 September 2016. The results are as per International Financial Reporting Standards (IFRS).

State-run NTPC advanced 4.36% to Rs 171.05 after the company signed a non-binding memorandum of understanding (MoU) with Rajasthan RajyaVidyutUtpadan and Rajasthan UrjaVikas Nigam for take-over of Chhabra thermal power plant stage-I (4x 250 MW) and stage-II (2x660 MW) of Rajasthan UrjaVikas Nigam. The announcement was made during market hours on Thursday, 12 January 2017.

US President-elect Donald Trump said in his first press conference late Wednesday, 11 January 2017 that pharmaceutical companies were getting away with murder with respect to drug pricing and promised a complete turnaround, making healthcare less expensive and better. He said that US is the largest buyer of drugs in the world, and yet, the country does not bid properly, prioritising bringing back drug industries back to the US. He added that US firms would start bidding and save billions. Trump also said he would repeal and replace Obamacarethe country's existing affordable healthcare legislation-shortly after price approvals, which could impact pharma companies.

Global Front:

In Overseas Markets,investors will look forward to the policies and actions of US President-elect Donald Trump, whose focus is on creating jobs and increasing spending in the US. If Trump's policies run into headwinds, then the domestic market may witness heightened volatility. China Q4 Gross Domestic Product (GDP) data for December 2016 will be announced on Monday, 16 January 2017. China's Industrial Production data for December 2016 will be announced on Monday, 16 January 2017.

UK Consumer Price Index (CPI) data for for December 2016 will be announced on Tuesday, 17 January 2017.

Global Economic News:

US holiday sales disappoint
US retail sales rose 0.6% in December, but were flat when excluding automobile and gasoline sales.

China’s 2016 exports fall
Exports from China fell for a second year amid persistent weakness in global trade. The possibility of disagreements with the United States over trade does not brighten the outlook for 2017. In 2016, exports fell 7.7% while imports slid 5.5%. There were some bright spots discernible, suggesting domestic demand is improving. Record amounts of oil, iron ore, copper and soybeans were imported in 2016.

Outlook upbeat for small businesses
The National Federation of Independent Businesses termed the jump in its small business optimism indicator “stratospheric” as the number of business owners who expect better business conditions jumped 38 points. The index rose to 105.8, its highest level since 2004. The increased optimism is leading to more business activity, such as capital investment, according to the group.

Global economy to expand 2.7% says World Bank
Despite stagnant global trade, subdued investment and heightened policy uncertainty, the World Bank expects global growth to expand at a 2.7% rate in 2017, up from 2.3% in 2016, a post-crisis low. Hoped- for fiscal stimulus from the US could generate fast growth, the bank said, though it cautioned that trade protection could have adverse effects.

Pace of US stimulus questioned
President-elect Donald Trump held a press conference this week but did not lay out a clear timeline or framework for the tax cuts and regulatory reforms he campaigned on. Markets are growing concerned that stimulus could come later than expected or be smaller in size than first envisioned. Trump did say that the Affordable Care Act would be repealed and replaced “essentially simultaneously.” The president-elect said that he would place his business interests in a trust and transfer control of his company to his two adult sons.

GLOBAL CORPORATE NEWS

BOE’s Carney: Brexit no longer biggest risk to stability
Bank of England governor Mark Carney said this week that Brexit is no longer the biggest single risk to financial stability in the United Kingdom. That’s a dramatic change in tune from the nation’s top central banker. Before the referendum in June, Carney warned of severe economic consequences if Britons voted to leave the European Union. Now, Carney says that the bank will very likely revise its economic forecast higher next month. The EU, Carney said, has more to lose from a “hard” Brexit than the UK.

NEW 52-WEEK HIGH BSE (A):

NEW 52-WEEK LOWS BSE (A):

MAJOR WEEKLY GAINERS IN BSE A CATEGORY:

MAJOR WEEKLY LOSERS IN BSE A CATEGORY:

Eyes will be set on the certain US economic data releases are:

Monday (16 Jan)
All Markets Closed
Tuesday(17 Jan)
Week Bill Anouncement& Month Bill Auction

Wednesday(18 Jan)
Consumer Price Index &MBA Mortgage Applications
Thursday(19 Jan)
Jobless Claims& Natural Gas Report
Friday(20 Jan)
No Major Data

Fundamental Pick of the week:

BUY Tata power Ltd For Target Rs. 88.00

The stock rose to two and half month closing high post giving break-out from “Symmetrical Triangle” pattern.We believe the stock will surge in the near-term, as (i) substantial rise in volume on the break-out day and (ii) gradual rise in RSI & MACD post their positive cross-over is signaling strength in the stock and in favor of probable rebound.On the higher side, the stock will initially face resistance around prior swing high and monthly moving average thereafter.

Recommendation

Long position can be initiated in Rs79.50-79 range for target of Rs88 with a strict stop loss of Rs76.

Indian Market Outlook:

The Nifty opened higher and ended the trading session on a positive note. It is approaching significant resistance levels. The 20 Week Moving Average (WMA) and the 50% retracement of the fall from 8968 to 7893 are converging at around 8430. It would be interesting to see if the bears manage to defend the crucial resistance level of 8430 or not. If the Nifty breaks and sustains above 8430, then a move towards 8510-8560 is likely. However, the Index is losing momentum on the upside. The hourly momentum indicator is already showing a negative divergence and has also given a negative crossover. Therefore, some caution needs to be maintained while initiating fresh long positions. The bulls will gain momentum if the Nifty breaks and sustains above 8430. The Index is interestingly poised at this moment. It continues to make higher top and higher bottom, indicating that the current uptrend can persist in the near term. Traders holding long positions in the Nifty should trail stop loss, as the momentum is weakening.

TECHNICAL VIEW:

Conclusion:

Nifty continue its uptrend now range of 8430-8435 is very important zone of resistance,crossing the same rally can extend towards 8600. Taking resistance in zone we can see downmove towards 8250. High made today was 8417 and low 8382 and close at 8407. As we have weekly closing tomorrow so bulls will be happy to close above the gann resistance zone as shown in below chart,bears will be happy to close below 8380. Close above 8440 can see next round of upmove towards 8555/8598. Bears below 8370 can move back towards 8270-8250 range.

Happy Investing…..

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Trade in MCX COMMODITY TIPS FOR PROFIT

Trading in Bullions

One of the most efficient ways to diversify your risks while making an investment is by buying bullion.But the fact remains that the success rate, as with any other sector of the stock market, depends solely upon the degree to which the planning and strategizing is done. Here we discuss some of the basic features of the bullion market -

Describing a bullion -Bullion is defined as the bulk amount of different types of precious metals like silver, gold, palladium or even platinum. These bullions are measured in terms of their weight and in general casted into bar like shapes. On certain occasions other forms of these metals are also sold such as gold is sold in the form of coins as well as grains, while silver s sold in the form of coins. Platinum and Palladium coins are also available but they are very rare.

Why use Bullion coins – Any coin which has been casted from some sort of precious metals following which it has been used for the purpose of investment is called a bullion coin. Their value is based on their bullion content and prices fluctuate daily.  Some of the examples of such coins are the Canadian, American, British and South African national coins. Also an added advantage is that since they are deemed as legal tenders, in many countries they enjoy favorable taxation policies

How the bullion market works – The main of the bullion market is to buy when the prices are low and sell when the prices are high.It is a well-known fact that the precious metals are the best option when it comes to long term investments.The trick here is to buy during a period when there is a slight drop in the prices of these items. Bullion has a tendency to follow a completely different trajectory as compared to the other commodities market. This makes it a very good alternative when any sort of losses occur in the other investments. For these reasons it is very attractive to invest in the bullion market for the long run.

How can you get a bullion – One the main methods to own a bullion is to physically obtain and secure it. Analysts generally are of the opinion that investing in the commodities market is a very good idea. But the fact is that most of them recommend investing in a large number of commodities together in the form of a basket. But this can lead a distort performances of the investment as the high returns of one type of commodity can be nullified by the drop in prices of another commodity.

Where can you buy bullions –Bullions can be bought physically in a number of countries including the UK and USA. But when buying any sort of bullions physically it is necessary to asses all the options very carefully. This because a lot of tax charges are related to buying a bullion, so various options including these options have to be looked into before buying commodities like gold and silver.For instance the island known as Guernsey offersvarious benefits while buying bullions. They provide several advantages like offering several tax advantages and also secured ownership to all the investors.

Where can you sell your bullions –The most important fact about the bullion market is that one has to deal with a supplier that always provides a very transparent and liquid market for buying the bullion back at very good rates so that the owner does not incur losses. There are many efficient and effective suppliers who are capable of providing a very transparent process of selling which is advantageous and simple at the same time. There are lots of offers which are of the having the pricing strategy of all in one. In this strategy the seller is not able to get the market rates for his deals.

It is also often found that that there are many companies which provide bullion to all its customers buy the discounted rates which is about 2-2.5% less than the market price. This is particularly true in the case of bars. But when it comes to bars bought from other sources they reduce the price by almost 4% which is huge in terms of total money.