Commodity outlook: Crude oil gains; here’s how others may fare

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NEW DELHI: There was a sea of green in the commodities market bullion, base metals and bullion futures rose in tandem as central banks backed the falling economy.

Gold rose 0.85 per cent while silver gained 1.72 per cent. Base metal counters climbed up to a per cent. Meanwhile, crude oil added 0.43 per cent and its peer natural gas was down 0.51 per cent.

NCDEX Agridex, an agricultural futures index that tracks the performance of the ten liquid commodities, was up 0.09 per cent or 0.95 point at 1,061.95 led by gains in guar gum and guar seed.

Here is how SMC Global expects commodities to fare today:


Bullion: Bullion counters may extend the rally where gold may test Rs 53,300 and take support near Rs 52,080 while silver may test Rs 65,800 and take support near Rs 61,200.

Base metals: Base metals may trade sideways with a bearish bias. Copper can move towards Rs 502 and face resistance near Rs 510. Zinc may move towards Rs 184 and take support near Rs 178. Lead can move towards Rs 152 while taking support near Rs 147. Nickel trade bullish bias where it may take support near Rs 1,030 and resistance near Rs 1,065. Aluminum may move towards Rs 143 while taking support near Rs 138.30.

Energy: Crude oil may trade sideways with a bullish bias where it may take support near Rs 2,890 and resistance is seen near Rs 3,080. Natural gas may trade in range where resistance is seen near Rs 145 taking support near Rs 133.

Spices: Turmeric futures (Aug) is expected to consolidate in the range of Rs 5,700-5,800. Jeera futures (Aug) may witness correction towards Rs 13,900-13,800 due to lack of cues from the spot markets. Dhaniya futures (Aug) trading near its six months high will possibly take support near Rs 6,300-6,250 and the downside may remain capped.Cardamom futures (Aug) is on a recovery phase and this shall continue till Rs 1,570-1,590.

Oilseeds: Soybean futures (Aug) is expected to hold on to the support near Rs 3,740, while the upside may remain capped near Rs 3,795. Mustard futures (Aug) is expected to trade higher towards Rs 5,070-5,090. Soy oil (Aug) is likely to trade higher towards Rs 870- 875, taking support near Rs 860. While CPO (Aug) may test Rs 740, taking support near Rs 725.

Other commodities: Cotton futures (July) is expected to trade sideways in the range of Rs 16,000-16,200. Chana futures (Aug) is expected to witness a consolidation in the range of Rs 4,080-4,140. Mentha oil futures (Aug) trading near its three year low is expected to go down further towards Rs 915-900, facing resistance near Rs 940.

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