Commodity Aluminum: Complete Guide for Traders

[00:00] I don't have any interest in stocks, Nifty, Bank Nifty. I don't need commodities. I don't even need to know. And if anyone is asking why I am making these videos

[00:16] and why I am trading in commodities, I would like to answer that. Not just equity, stocks, Nifty, Bank Nifty,

[00:30] we have another option, commodities. If we understand the economy and global events properly, we can select good trading opportunities in the short term

[00:44] We can practice in this segment as well. And along with this, there are people who trade in stocks, particularly in metal stocks. If you get an idea related to aluminum,

[01:01] you know the stocks that are traded in the market like Nalco, Hindalco, Vedanta, and Gravita. The stocks that have been discussed multiple times in our channel news videos You will understand the impact of these metals when you study them.

[01:20] Stocks are nothing but in their raw material or end product. Commodities are linked to that.

[01:32] the complete basics related to commodities and the global factors that impact the commodity prices like metal prices. After these two basic videos, we talked about gold, silver, crude oil, natural gas, copper, zinc,

[01:47] It ends here. I will also talk about the basics related to nickel along with lead. Our basic part of commodities will be completed.

[02:01] The entire videos related to commodities were arranged in a playlist. I think I will personally apply more in that. and the things that I personally used.

[02:15] I will keep it in that list till the few. If anyone else is using this as an indicator, So, if you are looking for the only commodities,

[02:30] You are telling the basic details but not how to treat it. We didn't take examples of many stocks.

[02:44] It's a basic structure. These are not stocks. For the broad markets, for Forex,

[02:56] they will be applied to any of these. if you want to do paper trade, and practice the strategy, price action, technical analysis,

[03:10] You can take these into your testing. Every subject we talked about will work only for Bank Nifty or Nifty Co. or other elements.

[03:25] you can apply it to any currency option or any future options The concept is similar. If we buy, it breaks out and the expansion in premium,

[03:41] and do a trailing stop loss. Remember that all this logic is similar. but by understanding other asset classes as well as equity,

[03:56] you can understand it better in stocks or in commodities And when you get trapped in it, you will understand How much you have a chance to go deeper.

[04:10] What you should do next for any stock or commodity? That's why I am explaining it to you in terms of commodities. it is secondary that you don't trade in these.

[04:25] you will have a proper idea about the fundamentals related to them. to explain the commodities and the entire subjects related to them

[04:39] if you find our team members' efforts valuable, Let's start the video. Friends, if you want to know about any commodity related idea,

[04:53] Click on the products section. What is aluminium and aluminium mini? How much profit do we get if we increase Rs. 1 in it?

[05:08] But basically, if you know about aluminium, Click on the download product leaflet. If we research for a long time,

[05:24] So that you can watch it in your free time. which are aluminium related with you. you will see the usage related to aluminium on the screen.

[05:41] Aluminium comes from an ore called bauxite. Ores are a raw material type. If we process and clean them completely,

[05:55] There are multiple metals in each ore. we had a subject related to metals and ores.

[06:08] we get aluminium related to bauxite. The majority of metals are used for building and construction. it is used for infrastructure and houses.

[06:23] It means, if a country grows, if the entire world grows, We have to build roads and bridges.

[06:37] It is related to our country and the world. 30% of the entire aluminium is used for that.

[06:49] Transport means, not transporting aluminium. If you take jeeps or any other vehicle, If you take airplanes,

[07:04] Most of the parts are made of aluminium. Aluminium is lightweight. It is not like moving it with air.

[07:17] It is 100% reusable. It can be recycled 100%. So, aluminium is used with these properties

[07:30] We can easily earn money with transport. We can see many uses of aluminium foils in packaging.

[07:43] Like chapatis, we can roll with aluminium foils. Even cool drinks are used in tins. These are used in electrical, consumer goods, machinery and equipment.

[07:55] You can see how aluminium looks like. Some metals, including aluminium, The top producer of aluminium in India is Odisha, 51%,

[08:11] So, 76% of aluminium from these three countries are made in India. You can see Indian stocks like NALCO, HINDA, VEDA.

[08:23] I will show you. Can you see? What is the link between these two?

[08:38] their inventory price will also increase and they will earn money. But, if the prices of aluminium increase,

[08:50] they will also have the chance to increase their prices. China, India, Russia.

[09:05] USA, Germany, China. China is the imported country. Please open the image.

[09:19] China plays a major role in the remaining commodities. China uses any of the metals and commodities. So, if you are trading in metal stocks,

[09:35] or if you are trading in commodities, Because, you can see the impact of whatever is happening there on the metals. I didn't mention the factors seriously.

[09:52] First, the people who produce and import the metals. have some restrictions on the production of the metals,

[10:04] like not to export or not to mine the metals from the country, if the people who produce and consume the metals if the impact of the metal is related to the supply or production,

[10:21] It is like using the aluminum globally. The prices of the metals directly related to the metal will increase. The companies who use the same metals as raw materials will follow the stock prices.

[10:40] the companies who use the metal and auto sectors to produce the products and vehicles, I have mentioned this many times recently.

[10:53] That is negative for the equities and the commodities in the market. Remember it blindly.

[11:05] Similarly, the dollar is a villain for the equity markets and the commodity markets. The commodity markets will also get impacted. Most of the metals, the base metals too.

[11:18] And also the interest rate is a villain. If the FEDs are trying to decrease the VAT rates, the metals will increase. If the VAT rates increase, the money in the economy, the liquidity will decrease.

[11:34] If the interest rate increases, the money in the economy or liquidity will decrease. If the money to be spent related to the economy decreases due to the decrease in liquidity, Infrastructure, construction, these roles are major.

[11:46] So, the slowdown in these roles and the impact of the metals used in these roles Okay, we know which factors will influence. If you come to your trading platform and search for Aluminium,

[12:02] So, Aluminium is a mini contract. If you add Aluminium here, if you want to buy Aluminium, you will be asked for a margin of Rs.1,18,000.

[12:17] If you want to buy Aluminium, you will be asked for a margin of Rs.23,600. Why should you buy this with so much money? If they are in the same price, the size of the contract will be different.

[12:32] If you want to understand it simply,

[12:47] I am showing it on the screen. Each lot is equal to Rs.5,000. So, each lot is equal to Rs.5,000.

[13:01] TIC price is changing with Rs.5,000. If it is Aluminium, we have to pay Rs.23,600. If one point decreases, we get Rs.1,000 loss.

[13:14] Usually, the supports and resistance we see, they work here too. the ones related to Aluminium,

[13:27] the supports that were there in recent days, at another point, in recent times, multiple times,

[13:39] So, if the price action increases, But the problem is, Like, majority of the time,

[13:52] It is in range bound for many people, And unlike stocks, we feel that they are becoming a compound,

[14:05] Like, in China, there is some reason, If demand is impacted there,

[14:18] prices will fall. it will increase or decrease, it is increasing overnight,

[14:30] these are not that volatile. And last and final, Aluminum is a big contract, right?

[14:43] so if you buy in 208, Brokerage is Rs.240, Net profit is Rs.4760.

[14:57] You will get charges of Rs.85. You will get a net profit of Rs.914 or Rs.915. Okay, I hope you found this video interesting.

[15:11] I will come back with another good video. Jai Hind!