[00:00] in the past, in commodities, we would spend around Rs.1,40,000. We can trade Zinc contracts with around Rs.30,000.
[00:14] We will talk about price action and fundamentals, How much profit do we get from a point profit? I will explain all these in this video step by step.
[00:31] We already talked about Gold and Silver, There are two categories in Zinc. While explaining the difference between these two,
[00:46] let's try to talk about the entire concepts related to Zinc. if we want to enter the commodity market from equity, We think it is difficult to understand everything,
[01:01] and mostly equity, stocks, and indexes people used to stop with these. What is inflation? What is the impact of GDP, jobs data, and China related
[01:16] positives and negatives on the stock market? We have talked about these in our channel many times. that is happening in India and globally.
[01:29] and understand some basic elements, your own knowledge will help you in trading in the commodity segment.
[01:41] but commodity markets are till 1130. So, if you are planning to trade in the commodity market, or if you are planning to trade in the global market,
[01:57] I will try to test in the commodity market. I am not saying that trading in the commodity market is the best. if you are not able to work in an equity market,
[02:12] then practice in the commodity market and see if it works here. your view and conviction will help you in taking the right trades. I will explain this in this video.
[02:26] Commodity videos are not very interesting. But friends, even if we get such low views, the main reason for covering these videos and commodities in the upcoming times is
[02:41] If you want to trade, you can trade with less money. And if you understand the concepts of economy, and if you understand the fundamental aspects of this video,
[02:53] then there will be less chance of getting cheated and getting fake trades. I am trying to tell you that there is a segment through our channel. If you are watching this and if we get such content in our channel,
[03:09] and if you want to encourage these videos, then please like this video and encourage us. So, first, I am deleting the entire things here.
[03:26] So, first, I took Zinc futures. You can come to the trading view or in the Zerodha platform. After adding it, you will get a chart.
[03:42] So, Zinc futures is the current month contract. The contract of the month that is running is shown here. How is the trend in the daily time frame?
[03:55] it is continuously forming lower lows and lower highs and is on the downside. the trend is also on the downside.
[04:07] and planned an upside breakout. It did not break low. But overall, we cannot take a bullish confirmation even after seeing this breakout.
[04:20] we can search for selling opportunities according to the trend in the daily time frame and even in the hourly time frame. we will come in 15 minutes and plan the trades. what we think is negative,
[04:35] We thought that consolidation will happen near that low, right? Draw a line near that consolidation. Even in the daily and hourly, lower lows and lower highs are visible.
[04:50] means before we think of selling or buying in 15 minutes, it has fallen and formed a consolidation below. Zoom out well.
[05:03] Where the consolidation market formed, important support and important resistance, means April 2019 is also an important resistance.
[05:17] So, it is an important level, right? So, maybe those who are following technical analysis, So, instead of becoming an aggressive seller,
[05:33] The trend is negative. Like, in the daily and hourly, it is totally negative. So, this consolidation is an important level,
[05:46] So, if you want to see it for selling opportunity, And if we want to play it for a very short time, the recently formed high,
[06:01] when it breaks, with a view that we can play bullish in a few days, we can take positions based on support and resistance in the lower time frame.
[06:13] Like, even if it doesn't come near resistance or support, You can see that the Fed will definitely increase the interest rates. promoters will update something,
[06:29] Then, what will increase and decrease these Zinc futures? what are the fundamental aspects that we should keep in mind? If you understand these things along with price action,
[06:43] after the candle is formed, a logic will come. like, if Fed raises the interest rates, If the strength increases related to the dollar,
[06:55] So, increasing Fed interest rates, for base metals, the economy will be impacted.
[07:07] When the demand is reduced, the metal prices will fall. then, the Fed will have a meeting in May.
[07:19] If there are expectations that the interest rates will be increased, You won't buy even if the resistance is broken. if you understand the fundamental aspects,
[07:31] selling the resistance that it broke, You will analyze the market view related to the data point, you should know these things.
[07:46] After talking about these fundamental aspects, What is the difference between these? Let's talk about all these,
[07:59] Even if you want to know about other metals, If you want to know about gold, silver, and other metals, go to zinc.
[08:16] we should talk about nickel, lead, aluminum, If you want to know anything, from the product leaflet.
[08:31] Friends, when does a metal's value increase? Gold is usually used in industries less, We use gold more personally.
[08:47] We don't use them as rings or as vessels. If you look at zinc in particular, Where is the use of zinc?
[09:01] If you make something with steel, you will get rust. If you coat the metal with zinc,
[09:15] like if you dip the metal in zinc and coat it with a layer of zinc, If you use it in construction or in vehicles,
[09:32] So, they use zinc more here. You can see the use of zinc in other fields. Where do they use these metals?
[09:44] industrial machinery, if it is steel, it is steel. Galvanizing with zinc is the main purpose.
[09:59] you can answer it in the comment section. What is the most important zinc related stock in the stock market? Almost 75% of the entire zinc production in India
[10:11] the stock that depends on this, Copper, zinc, aluminum, They are entering new segments recently.
[10:23] 75% of the Indian zinc business is done by Hind Zinc. If the zinc prices are increasing, So, the stocks are like that.
[10:38] First, there are many mines. Then, Peru, Australia, US, The zinc that is being produced in India,
[10:51] Which countries are we importing from? We need to understand the factors that impact zinc prices. If the Fed is increasing the interest rates,
[11:06] Because the interest rates will make the dollar stronger. Because no matter what the trade price is in the dollar,
[11:18] So, if the dollar is strong, the metal prices will fall. the economy will be affected negatively. the metals will automatically reduce their efficiency.
[11:31] If the Fed is increasing the interest rates gradually, Because the Fed increases the interest rates to control inflation.
[11:43] The metal rate is also a rate. So, in an attempt to increase the interest rates and control the prices, and the metal prices will have a negative impact.
[11:56] and if something comes up, If the Fed increases the interest rates, the dollar will be weak and it's positive for the metals.
[12:10] So, China produces more and consumes more. So, in industries, in construction, If China is producing more,
[12:27] if they try to reduce the production, If the entire Chinese economy is impacted, the production will decrease.
[12:41] The demand will decrease. the prices will automatically fall. And the global economy is also an important factor.
[12:53] If the economy is weak, the prices will also fall. There were no major updates about this till now. we think that zinc is being used for galvanizing for steel so that there won't be corrossion.
[13:09] if they think that there is no need to use zinc, if a new technology comes up, and if there is a new technology,
[13:23] if there is an update about the impact of zinc floats up in market, If they find that a new technology needs zinc, need more lead in the battery.
[13:37] We need to understand the positive and negative effects of lead on metals. are taking decisions to reduce the pollution in China,
[13:49] if you can understand weather there would be an impact on production and consumption, And the general concept is that If the economy is falling, base metals will also fall.
[14:02] the zinc prices that are traded in India, That means, the base global standard That is called LME Zinc.
[14:15] Let's come to our futures directly. If you type zinc, you will see a future. But personally, look at the future, but don't go to options so easily.
[14:29] there is no strong liquidity in some strike prices. And most probably, if we buy after buying, we will have to hold the contract with the buyers and sellers issue.
[14:43] Base metals have a physical delivery. you have to take a physical delivery. and move you to the next contract.
[14:56] If they keep it, they will be liable for it too. If they don't do it, every contract will have a starting working day.
[15:08] So, a few days before the last working day, First, a normal contract. If you want to buy it,
[15:21] If you want to buy it, it is Rs. 1,40,000. Let's talk about this first. You can see the details related to this on the screen.
[15:34] You saw that the contract is asking you for Rs. 1,40,000. That means, 5,000 kgs. the Rs. 1,1 that changes is equal to Rs. 5,000.
[15:48] We have 5%, 10%, 20% Here, the price is at 4% for some time. Here, it falls more than 6%.
[16:01] there is a 15-minute cool-off period. Then, it falls from 6% to 9%. again, it changes by 3% to 3%.
[16:14] the price will fall or rise. It has Zinc Mini. Normally, if you type Zinc, these futures will come.
[16:27] If you want to buy this, If you want to buy this, it will be around Rs. 27,700. it should be around Rs. 30,000.
[16:40] the capital to balance the trade should be with us. we get profit around Rs. 5,000. Because there, 5 metric tons,
[16:55] So, if Zinc Mini moves by Rs. 1, The remaining concepts are the same. The size of the contract is small.
[17:08] And finally, let's come to charges. and sell it at Rs. 237, You get almost Rs. 91,
[17:22] GST, If the charges are Rs. 91, Rs. 909 is your net profit.
[17:36] if you buy it at Rs. 236, you get nearly Rs. 265 charges. you get 91 multiplied by 5.
[17:50] If you do the same 5 lots, So, don't do 5 lots. If you want to do more lots,
[18:03] you get less charges. If you have any other questions, I will do a dedicated Q&A for them.
[18:16] I will meet you again with another video. Jai Hind!