Titan Industries Net Profit up 88.2%

Titan Industries reported that its second quarter Net Profit has jumped up by 88.2%. The company reported its net profit increased to Rs87.14cr from Rs46.30cr in same quarter previous year.

The Company registered an increase of 52.4% in its income which was Rs1,104.85cr as compared to Rs725.11cr, during the corresponding period last year.

The groups’s core businesses-Watches and Jewellery, have grown significantly over the previous year, the company said in a statement.

The Company’s Watch sales grew by 18.8% with its income increasing from Rs255.34cr during the second quarter of last year to Rs303.45cr in second quarter of 2008.

While the Jewellery income grew by 71.4% to Rs752.18cr versus Rs438.84cr in same period previous year. The spurt in jewellery income was also due to the increase in gold price during the quarter, the company said.

“We have had a significant expansion in the network. Despite high volatility in gold prices, the Tanishq and Gold Plus showrooms continue to attract discerning customers who value our products and service offerings. We will be launching a number of new collections in watches, jewellery and eyewear categories during the coming festival season,” said MD of Titan Industries, Bhaskar Bhat.

The group’s other businesses grew by 93.7% from Rs17.62cr during the quarter in 2007 of last year to Rs34.13cr during the corresponding period this year.

The company said in a statement that the first half of the current year has shown good growth and its Net profit has jumped by 102.5%, from Rs58.94cr during last year to Rs119.36cr this year.

Watch sales have grown over 12% to Rs475.34cr and Jewellery sales have grown by 51% to Rs1,367.90cr compared to last year. Total sales are also reported to be up by 38.2% from Rs1,391.70cr during last year to Rs1,923.91cr this year.

Gold still on the back foot: Standard Bank

“Gold is still on the back foot. With more dollar strength in the pipeline, the yellow metal is putting up little resistance,” said a Standard Bank report on Wednesday.

On MCX, the December contract for gold was trading at (14:54 IST) Rs12,188, down by about 1.5% from its day’s high of Rs12,317 on Wednesday.

MCX Gold December gold prices plunged to Rs12,307 levels and settled at Rs12,377 levels on Tuesday.

“Market is expected to come down and the next supports can be seen at Rs12,200 and then Rs12,050 levels,” said a Karvy Comtrade report on Wednesday.

The report also mentioned that the resistances can be seen at Rs12,400 and then at Rs12,436 levels. “If market sustains below Rs12,436 we may expect gold trading lower. We recommend taking short positions for the day,” it added.

The Standard Bank report also mentioned that after a steady opening just below $800 in Tokyo, gold moved gradually south as the euro weakened. At $790, some stops were triggered, and the metal quickly fell to $785, it said.

“With the dollar still on the rise, gold could remain under pressure today. Primary support is at $757, and a secondary support band at $742 - $720. Resistance is at $794, $810 and $818,” it said.

WGC, HDFC Bank tie up to extend personal loans

World Gold Council (WGC) has got-together with HDFC Bank to offer personal loans for gold buyers. The step taken is in effort to boost gold sales in India. The service is expected to be launched across the country over next few days.

HDFC will provide personal loans at an interest rate of 16%. In place of security against the loan the bank will keep back the purchased gold on behalf of the customers until the entire cost is paid back to the bank. Starting three months from the date of purchase the consumer can pay the entire amount of loan in installments.

Initially the bank will provide loans for up to 50gm of pure gold but plans to provide loans for bigger investors too in the future.

Sona Swiss unveils 'Gifts in Gold' collection for Diwali

Sona Swiss unveiled 'Gifts in Gold' for Diwali. The new range launched is a diverse collection of products in 24 karat gold foil made with unique 3D technology.

The range includes Divine Collection, Flower Garland, Gold foil playing cards, Art décor frames and new range of gold flower collections and lots more.

The 24 karat gold foil art décor products range are handcrafted and have been specially designed and created using traditional goldsmith's skill combined with the latest patented 3D Art Technology.

‘The Divine collection’ includes 3D frames of Ganesha, Laxmi, Saraswati, Durga, Ganesh-Laxmi Pair, Ganesh-Laxmi-Saraswati Trio, Balaji, Shreenathji and Radha Krishna while the ‘Gold flower collection’ includes 24k gold rose, 24k gold carnation, flower brooch/ hair accessory collection, bouquet, 24k gold foil pendants and 24k gold cards.

All the products are made of pure 24 carat Gold leaf with a purity of 999.9 in a thousand. The company has also been independently certified for their gold purity by the Assay offices in London and New York.

All the gold products are also certified from Taiwan, USA and the gold foil products are patented for designing and manufacturing. All gold materials used by the company are of high purity and are imported from Switzerland.

Analysts expect gold to resume lower trend

Market is expected to make a higher opening and the immediate resistance can be seen at Rs12,800 levels. Likewise, the supports are at Rs12,650 and then Rs12,570 levels. Analysts are expecting gold to resume lower trend after a brief higher correction.

Gold prices remained range bound and traded sideways in Monday’s session, in the absence of any major economic trigger.

The only economic data from the US was the leading indicator for the month of September, which unexpectedly rose thereby giving a lift to the dollar, said a Kravy Comtrade report.

For the day, as the market awaits no economic data, prices are likely to remain sideways. However the report also said that the strengthening US dollar is likely to put pressure on the bullion market, hence indicating a bias on the lower side.

The dollar advanced for a fifth day against the euro after Federal Reserve Chairman Ben Bernanke endorsed additional fiscal stimulus to support the US economy. The dollar traded at 18-month high levels against the euro on this act of the chairman, it said.

The MCX December contract for gold prices were seen trading sideways while closing it formed a technical Doji pattern in the daily chart and closed at Rs12,682 levels.

US Federal testimony awaited: Karvy Comtrade

On account of weakening US dollar today bullion prices are trading higher by almost $12 on account of weakening US dollar. The dollar is seen to weaken on concern that the US Federal Chairman may forecast a prolonged downturn when he speaks today.

Ben Bernanke will testify at the House Budget Committee on the economic outlook and financial markets at 10 am in Washington. The continued poor economic data emerging from the nation has lead to poor economic outlook for the world’s largest economy.

Single-family home building sank to the slowest pace in 26 years in the US in September and the industrial production index dropping to 2.5 years lows, has increased lower economic prospects. The economic sentiment is badly hit as there seems to be no symptoms of revival in the housing sector.

No major economic data is awaited today; however the outcome of the US Federal chairman’s testimony will be crucial to watch out for. Prices are likely to remain on the sidelines for the day, on back of the weaker US dollar and uncertainty of the economic revival.

“The December contract gold on MCX traded lower and posted a lower closing at Rs12,587 levels. Market is moving lower as it is trading below the 50-day EMA in the daily chart. Market is likely to take an initial correction and the immediate resistance is seen at Rs12,624-Rs12,650 levels. If prices are sustaining below the resistance we may expect market trading lower. The supports are at Rs12,400 then Rs12,325 levels,” said a daily commodity report by Karvy Comtrade.

GJEPC's new office at Bharat Diamond Bourse

The Gem and Jewellery Export Promotion Council (GJEPC) shifts its office to the Bharat Diamond Bourse (BDB). On 9th October, an auspicious and festive day of Dussera in India, the Council shifted its exhibition cell to BDB. It will relocate its office within two weeks.

At the occasion, dignitaries’ from the diamond industry such as Anup Mehta, President BDB, Vasant Mehta, Chairman, GJEPC, Bakul Mehta, Convener – Diamond Panel , Nirupa Bhat, GIA, Diamantaires Ashish Mehta- Kantilal & Chhotalal, Kirti Doshi , Nirmal Barmecha, and also the GJEPC working committee were amongst the others present.

The Intent is to consolidate Mumbai’s entire diamond industry at one location. Presently, the industry is concentrated at two to three zones in Mumbai.

Bharat Diamond Bourse launches

According to a report by the Gem and Jewellery Export Promotion Council (GJEPC) the new diamond bourse in India has officially been launched last week.

The GJEPC inaugurated its office at the Bharat Diamond Bourse in Bandra-Kurla complex, Mumbai on 9 October. Customs and some of the first offices from other sectors of the industry are likely to make the move to the Bharat Diamond Bourse by end of this year.

Tanishq unveils hi-end jewellery collection ‘Aleya’

Tanishq announced the launch of their exquisite ‘Aleya’ collection, a range of hi-end diamond jewellery set in 22k gold.

Aleya, which means "to rise or ascend" in Hebrew or "highborn or of the highest social standing" in Arabic, is a mixture of polki or uncut diamond and semi-precious stones like rubies and tourmalines set in 22 karat gold with an open setting.

"We at Tanishq aim at offering the best and the latest design in line with the existing trends. Aleya Collection from Tanishq is designed keeping in mind the demand for variations in diamond jewellery and also a requirment for the forthcoming wedding season. We have about 150 designs ranging from neckwear, earring, finger ring etc. that is carfted using uncut diamonds and semi-precious stones," said Sangeeta Dewan, Head of Tanishq’s Design Studio.

The collection is priced Rs40,000 onwards and will be available at 50 Tanishq's stores across all major metros and select tier-II cities.

Tanishq’s jewellery is manufactured in a fully integrated manufacturing plant with state-of-the-art equipment. The Tanishq retail chain currently includes 112 exclusive boutiques in 75 cities, making it India's first and largest jewellery retail store chain.

Precious metals shine: Walter de Wet

Yesterday turned into a disaster for equities, crude oil and base metals. However, precious metals showed their mettle. With financial markets in such disarray, gold was the happy beneficiary.

After an uninspired start by equities in Asia yesterday morning, markets deteriorated as the day progressed. The FTSE in London shed 7.85%, followed by the S&P and Dow clocking losses of 3.85% and 3.58% respectively. Equities in Asia are listless again this morning in the wake of yesterday's shocking stock performances in Europe and the US after markets in Asia had closed. However, today should be less volatile trading as financial market investors regroup.

With panic spreading yesterday, the US dollar simply shone. It went from strength to strength, pushing from $1.3705 in Hong Kong to $1.3444 against the euro in New York. Should sentiment steady today, the dollar might give up some of these gains. However, we believe the euro will remain under pressure against the greenback in coming months.

Central bankers around the world, specifically European central bankers, are likely to work ceaselessly to return stability to financial markets. While a surprise interest rate cut is not our base-case scenario, we believe the odds of this have risen in Europe and the US. ECB president, Mr Trichet, will speak later today, followed by Fed Chair Bernanke. Markets will be scrutinizing their comments.

Gold started the day steadily, drifting around $830. But with panic infecting equity markets, investors piled into the yellow metal when European markets opened. Gold then climbed to $875.5 at the PM Fix. What makes this rally so noteworthy is that it happened despite a rampant US dollar. Towards the close in New York, gold had to surrender some gains; it closed at $864. Primary support is at $853, and secondary support at $843 and $822. Resistance is at $875, $888, and $906.

Silver started the day on the back foot, losing 30 cents in Asia, to trade at $11.00. But with gold pushing higher in Europe, silver followed, touching $11.50. In choppy trade, it bounced between $11.15 and $11.40. Support fell away towards the close, and silver closed at $11.04. Primary support is at $10.94 and secondary support at $10.64 - $10.50. Primary resistance is at $11.52, and secondary at $11.80.

Platinum also benefited from financial market uncertainty, tracking gold. It gained from $930 to just around $1,000 in New York. With momentum fading for gold, platinum closed at $973.

Palladium is still holding up well. Although trade has been erratic, it seems to have settled at $195 - $205. It closed at $198.

Rhodium dropped again, fixing at $3,195 in New York.

Nirupa Bhatt appointed as Chairperson of FICCI's Gem and Jewellery Sub Committee

Nirupa Bhatt, MD, Gemological Institute of America (GIA) India Laboratory Pvt Ltd, has been appointed as the Chairperson-Sub Committee Quality and Standardisation of FICCI's Gem and Jewellery Committee.

"India has the potential to be the global manufacturing hub for cutting and polishing of diamond and gemstones as well as jewellery manufacturing. However, in order to achieve this it is imperative for the companies to be able to be recognised for consistency in quality. This is only possible if companies have documental systems and processes in place. Standards and technology together can become the enabler for achieving this," said Nirupa Bhatt.

The primary objective of the committee will be to promote use of technology in manufacturing and production to modernize and upgrade the current practices in the Indian gems and jewellery sector .

Platinum and Palladium hit multi-year lows in September

Platinum Group Metal (PGM) prices continued to fall in the month of September, with platinum and palladium hitting multi-year lows and all three metals posting double-digit month-on-month losses, said a Standard Bank report.

The PGMs traded far below their individual 200-day moving averages, driven lower in part by a stronger dollar and softer commodity prices in general, it said.

The report further added that the deteriorating outlook for the global economy was another contributing factor to the weakness in price. A significant source of downside pressure was attributed to data released during September showing marked declines in auto sales in Europe as well as in several key emerging markets, such as China and India.

Silver more volatile than gold

Silver metal remained more volatile than the yellow metal in the month of September.

The overall trends in the two prices were very similar as an uncertain silver market allowed itself to be influenced by gold. Although the market feeling was, in line with the relative fundamentals of the two metals, that silver was the more sluggish of the two with respect to the upside, the Standard Bank report said.

Gold prices buffeted in September: Standard Bank

Gold prices were buffeted during the month of September in the same way as those of any other asset class, but in keeping with gold’s history as an investment vehicle (as well as a natural resource commodity), prices traded in a narrower range than the rest of the precious metals sector, said a report by Standard Bank on Monday.

The report said that between the start of September and the beginning of October, gold gained about 7% in price, while silver and PGM (Platinum group metals) prices fell. A single snapshot does not tell the whole picture, however, and the market itself experienced a variety of phases as problems escalated in the financial system.

One tangible element was the development of vast fund flows into the major Exchange Traded Funds as investors looked to reduce counterparty risk, it said.

Gem and Jewellery park in Chhattisgarh

The Indian state, Chhattisgarh plans to invest $37mn to set up a gems and jewellery park at its upcoming satellite city Naya Raipur, said state Industry Minister Rajesh Munat.

The park at Naya Raipur whose foundation stone was laid on Saturday will be India’s one of the major gems and jewellery parks.

The park will spread across 28.32 hectares of land and will house latest diamond cutting and polishing technologies. The park is likely to generate direct and indirect jobs for about 25,000 people. The project is expected to be ready by 2011 and will be maintained by Chattisgarh State Industrial Development Corporation.

Naya Raipur will replace Raipur as the state’s capital by 2011. The new city that will be sprawl across an area of about 20,000 acres will be equipped with state-of-the art physical, social and economic infrastructure.

Markets still shaky: Standard Bank

US legislators passed the much disputed $700bn rescue bill late on Friday but markets are not convinced of its ability to revive gridlocked credit markets, said a report by Standard Bank.

While US inter- bank lending rates have declined, they’re still extremely high, it said. Despite authorities’ efforts, banks remain suspicious of counterparties’ ability to honour financial obligations.

Scepticism around the rescue plan is also being demonstrated by Asian equities having fallen sharply this morning, the report said. The Nikkei was down more than 4%, followed by the Hang Seng at 3.5%. US equity futures have lost more than 1.5%, possibly signalling another red day in US equity markets.

Global fears continue to translate into high demand for US Treasuries at the expense of other assets. The main beneficiary have been the USD which has gained ground from $1.3850 to as low as $1.3605 against the euro.

“We expect this trend to continue if the Europe and the US track Asian markets later today,” said Standard Bank’s commodity analyst Walter De Wet.

On the data front, Friday’s US non-farm payrolls, which declined by 159,000 which was much more than the estimated forecast decline of 100,000 adds to the list of negative data.

“Faced with a stronger dollar, PGM and silver will see little support. We estimate the average PGM basket price currently at $847/oz. While the market is currently more concerned about demand, persistent low prices would put many mines in financial difficulty,” said Walter.

Walter also mentioned that the yellow metal is still dithering and with investors unwilling to commit to major positions on Friday, gold traded erratically at $845/oz-$825/oz.

After finding some support early in Asia, which pushed gold from $830/oz to $845/oz, gold lost its direction as the dollar drifted around $1.383. A series of sharp spikes followed when US markets opened, but gold remained stuck at $825/oz-$845/oz. It closed at $828.5/oz on Friday, and held up well in the aftermarket after the rescue plan was passed, reflecting the lingering concerns in financial markets, said the report.

“Primary support is at $821/oz, and secondary support at $807/oz and $803/oz. Resistance is at $848/oz, $861/oz, and $888/oz,” said Walter.

The report mentioned that silver initially found solid support in Asia as it gained $0.65, to trade at $11.40/oz, before it stabilized in Europe. Renewed buying support in New York saw the metal shoot to $11.70/oz, just to subside again when gold lost steam. Silver ended the week at a bid of $11.25/oz.

“Primary support is at $11.00/oz and secondary support at $10.88/oz-$10.70/oz. Primary resistance is at $11.65/oz, and secondary at $12.00/oz,’ said Walter.

Platinum remains under pressure; on Friday, trade was choppy. The metal failed to break above $1,000/oz, bouncing between $950/oz and $980/oz. With the stronger dollar, platinum could remain under pressure today. It closed at $955/oz on Friday.

Palladium is holding up well despite platinum’s move lower. Although the metal dropped to $195/oz on Friday, it managed to claw its way back in New York and closed at $198/oz. Rhodium lost $60/oz, to fix at $3,210/oz in New York, it said.

Vasant Mehta is the new chairman of GJEPC

Vasant Mehta has been elected as the new Chairman of Gem and Jewellery Export Promotion Council (GJEPC) while Rajeev Jain has been appointed as the Vice Chairman. The 42nd Annual General Meeting (AGM) of the GJEPC took place on 30th September 2008 in Mumbai.

Mehta will take on the responsibilities from the ex-chairman of GJEPC, Sanjay Kothari, who has completed his two-year term from 2006 to 2008. Jain, who was Chairman, Jaipur region, GJEPC will be succeeding the post of Vice-Chairman of the Council.

"It is a position of great honour and immense responsibility. I have series of tasks to accomplish in times to come and I look forward to the similar support and cooperation extended to the past Chairman to take the industry to newer heights,” said Vasant Mehta.

The newly elected chairman and vice chairman will hold office for a period of two years from 2008 to 2010.

“I am thankful to the Committee, members; media and Council for providing immense support all throughout which lead the industry achieve great heights. Multiple new projects are in pipeline and I along with the committee and team are ready to provide the same support to the new Chairman which will help continue the growth,” said the Ex Chairman of GJEPC, Sanjay A. Kothari.

Mehta is founder and senior partner of M/S. V. Rameshchandra & Co., Mumbai. After graduating from Calcutta University, Vasant Mehta migrated to Mumbai and joined the newly developing diamond cutting industry in 1966.

He joined GJEPC in the year 1969 as an honorary member and consequently held several important positions including that of Vice Chairman of the Council. Recently, he was re-elected as Vice Chairman, to serve until year 2008. He has also been a convener of the Banking Insurance and Taxation Committee for over 10 years. He has served as a member of the committee of the Bharat Diamond Bourse and has been an Advisor to their Legal Committee. He is currently the VP of the International Diamond Manufacturers Association (IDMA) and is also a special advisor to China Diamond Industry.

Jain is the Promoter and Director of Vaibhav Gems Ltd, the first ever Public Ltd Company in the Jewellery sector from Jaipur. Presently he is also shouldering responsibilities as Chairman of Sambhav Gems Ltd. Jain has served GJEPC earlier at various positions, including having been the Convener, Colour Gemstone Panel. He has also been the Ex - Chairman of the CII, Rajasthan Sector, Director of International Colour Gemstone Association (ICA), Honorary Secretary of Jaipur Jewellery Show & as the Ex-Vice President of Jewellers’ Association of Jaipur.

The Gem & Jewellery Export Promotion Council is an all India apex body representing 6000 Gem & Jewellery traders from India. Set up in 1966, it operates under the supervision of the Ministry of Commerce and Industry, Government of India and elected representatives of the industry. The Council is a non-profit organization involved with service to the nation.

Commodity prices weaken due to global slowdown fears

Fears of slower international economic growth coupled with a sharp appreciation of the USD against the EUR combined to drag commodity prices (USD terms) lower, said a report by Commonwealth Bank of Australia on Friday.

It also mentioned that the recent US economic data has been soft, with data released earlier this week showing that the US ISM manufacturing index declined in September, while US auto sales had been weak in September.

Moreover, commodity markets are increasingly concerned that the post-Olympics bounce in Chinese economic activity has been tepid.

The oil price fell back in response to the firmer USD and worries about the implications of weaker international economic growth for oil demand. NYMEX light sweet crude (November contract) touched $94/barrel. The gold price (spot) also slipped sharply, with selling related to the firmer USD and lower oil prices outweighing safe-haven related demand, it said.

“Markets are nervous, erratic and unpredictable, and investors are risk-averse. And so, commodities sold off relentlessly, driving prices down. Precious metals were hard hit, with silver taking the brunt, sacrificing 12.85%. Platinum lost 5.5%, palladium 4.3%, and gold 4.5%,” said a Standard Bank analyst Walter de Wet in a report.

Although platinum came under early selling pressure due to worse-than-expected US auto sales, precious metals were initially stable, the Standard Bank report said. However, the decision by the ECB not to cut interest rates, combined with a bearish statement on the Eurozone, triggered broad asset liquidation. The dollar then appreciated rapidly against most currencies. It went from $1.39 to a low of $1.3748 against the euro. As of now, it remains well below $1.39, it said.

“We foresee more disorder for markets. If the US House of Representatives passes the financial rescue package tonight, it would bring some relief, but not enough to restore confidence. Credit markets still have too much asymmetric information, which is inhibiting risk appetite. Against the backdrop of the slowdown in real economic activity globally, commodities will stay under pressure. These conditions would favour the US dollar and, because of little liquidity, gold could battle to rise much higher despite credit risk being high,” Walter said.

Analysts and traders are keeping an eye on the US non-farm payrolls due for release tonight. Markets expect a decline of 105K jobs. Anything more could see more money flee from commodities, the report said.

The Standard Bank report also mentioned that the yellow metal stayed on the back foot. Although it traded steadily lower in Asia and Europe, the weak euro dragged it down from around $870/oz to $865/oz. The major sell-off started just before the PM fix, and gold plunged to $830/oz as the US dollar strengthened. It closed at $842.50/oz. Primary support for gold is at $830/oz, and secondary at $820/oz and $803/oz. Resistance is at $864/oz, $892/oz, and $900/oz.

Morning trade was orderly, with the silver metal tracking gold, but the sell-off after gold's drop was merciless and Silver took a beating. Just before New York opened, silver slid to $11.80/oz. After failing to settle, it shed another 50c in US trade, closing at $11.05/oz. Primary support is at $11/oz and secondary at $10.30/oz-$10.25/oz. Primary resistance is at $12/oz, and secondary at $12.18/oz.

While Platinum sentiment remains negative the bearish economic data, scarce liquidity and the strong dollar are intimidating it. Platinum dropped early in Europe, from $1,040/oz to $980/oz. It then spent the day bouncing, and closed at $973/oz.

Palladium was pushed down all the way from $213/oz in Asia to $203/oz in Europe to $200/oz in the US, and closed at $199/oz. $200/oz is providing some support. Meanwhile Rhodium dropped more than $500/oz on Thursday, to $3,270/oz in New York.

Titan launches Raga Diva

Titan launched Raga Diva on 30 September, 2008, in Mumbai. The new women's watch collection which are inspired by traditional kundan work was launched by bollywood actress Soha Ali Khan.

“The new collection of watches express the desire of every woman today to express the Diva inside her. The flamboyant designs of these watches make them the perfect accessory to be worn during the festival season when women dress up in their preeminent way and want to feel their feminine best,” said Ajoy Chawala, VP of Titan.

The new watch collection features 24 models of which seven are of distinct styles and range between Rs4,000-Rs10,000. The collection will be available at World of Titan showrooms and multi brand outlets across the country.

"Road Side Romeo" collection launched by Popley's Disney Fine Jewellery

The Popley's Disney Fine Jewellery division has launched a new range of diamond jewellery called "Road Side Romeo" collection.

With the animated movie, this collection will mark The Walt Disney the company's first Indian collaboration. RoadsideRomeo, which is the animated movie will feature Saif Ali Khan and Kareena Kapoor's voice over.

Popley & sons have designed the pendants to displays the love betweenthe two characters 'Romeo' and 'Laila' in the movie. The desgined pendant is a Unisex piece of jewellery with the oval shape getting converted into a heart shape. The oval pendant has the image of Romeo while the heart shape is accompanied by Laila.

The pendant is studded with brilliant cut diamonds in 18 karat gold and is limited to only eight pieces worldwide. The collection will be available only at Popley & Sons stores.

Bear trend prevails for Palladium:Standard Bank

The short-term bear trend prevails for the precious metal Palladium said an Australia based, Standard Bank report on Wednesday. The market continues recording lower lows and lower corrective highs and, with this in mind, a bearish view is expressed below $256, said the report.

Palladium is likely to encounter support at $190, prompting a minor recovery. Once a break below $190 occurs, the Standard Bank analysts expect the trend to recommence to $166-fulfilling extended objectives off the $590 high.

The report also mentioned that the technical indicators have already entered the oversold territory, but continued weakness through $166 exposes the market towards $140.

"We are not forecasting a break below $140, and therefore expect palladium to establish a support base between $166 and $140, and enter a period of sustained corrective strength. In the event of a break below $140, the next support point is situated at $114-the 1996 low. Resistance between $302 to $305 is regarded as a pivotal area," said the Standard Bank report.

A break higher will indicate a near-term trend reversal, turning the outlook positive, the report said.