Home Market Commodity Outlook: Oil may hit a rough patch at Rs 4,950 on...

Commodity Outlook: Oil may hit a rough patch at Rs 4,950 on MCX


Bullion took on more lustre on Thursday, riding on demand for precious metals by jewellers, industries, investors and retailers.

MCX Gold futures were 0.49 per cent up at Rs 32,068 per 10 grams at around 11.25 am. Silver futures rose 0.28 per cent to Rs 38,943 at around the same time.

We present you an outlook for commodities by SMC Global Securities.

Gold and silver: Gold can take support near Rs 31,800 per 10 grams and hit a speedbreaker near Rs 32,300 on MCX. Silver can take support near Rs 38,600 per kg, eyeing resistance near Rs 39,300.

Base metals:
Base metals prices can tread on a negative path. Copper upside may be limited near Rs 456, may have a support near Rs 445. Zinc's equivalent figures are Rs 201 and Rs 197. While lead can find some cushion near Rs 144 and face headwinds near Rs 148, nickel's respective figures are Rs 880 and Rs 910. Aluminium can take support near Rs 145 levels while it has resistance level near Rs 148.

Energy: Crude oil can draw its strength from near Rs 4,880, but may hit a rough patch near Rs 4,950 on MCX. Natural gas may trade with a sideways bias as it can move in a range of Rs 230-235 on MCX.

Turmeric futures (November) are likely to move sideways to down in the range of Rs 6,550-6,685. Jeera futures (November) are expected to move both ways taking support near Rs 19,670. Coriander futures (November) are expected to take support near Rs 5,550-5,500 levels and the downside may remain capped.

Soybean futures (November) are expected to go higher towards Rs 3,300-3320 levels. The counter is expected to witness a lower level buying taking positive cues from the spot markets. Mustard futures (November) are likely to trade higher and test Rs 4,250 levels as soon as it breaches the resistance level near Rs 4,225. China has dropped a ban on rapeseed meal imports from India as the government seeks to diversify sources of protein used in animal feed, China's Customs administration said. Rapeseed meal shipments from India can resume from Monday if they meet certain inspection and quarantine requirements, the General Administration of Customs said on its website. CPO futures (October) are expected to witness a consolidation in Rs 582-590 levels.

Other commodities: Cotton futures (November) are expected to trade mixed in Rs 22,640-23,000 levels. Cotton edged higher in Central and South India due to strong mills and exporters demand against reduced supply. The balance sheet drawn by traders revealed tight supply demand for 2018-19. The availability of cotton is estimated around 386 lakh bales (170kg). Guar seed futures (November) are seen to take support near Rs 4,600-4,525 levels and trade on a bullish note. Stockists are buying guarseed in bulk quantity due to expectations of better return this season amid prospects of lower crop for the second consecutive year. Chana futures (November) will possibly take a plunge towards Rs 3,950-3,900 levels.

Original Article