Commodity Outlook: Crude oil slips; here’s how others may fare

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NEW DELHI: Commodity futures were trading mixed on Monday on MCX as bullion rose but crude oil slipped amid slowing employment generations and fast rising Covid-19 cases in India.

Gold gained 0.22 per cent while silver added 1.34 per cent. In the base metal block, all commodities were trading with cuts with mickel falling the most at 0.28 per cent. Crude oil was down 1.10 per cent but its peer natural gas was flat.

“Fed officials signaled towards a prolonged lower interest environment and more stimulus measures in the coming months to help the economy get back on track. As of today, traders can go for gold at Rs 51,100 with the stop loss of Rs 51,450 for the target of 50,200. They can also sell in silver at Rs 68,500, with the stop loss of 69,900 and for the target of 65,000,” said Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking.

NCDEX Agridex, an agricultural futures index that tracks the performance of the ten liquid commodities, was down 0.68 per cent or 7.60 points at 1,115.40 led by losses in coriander and refined soya oil.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counters may trade with bullish bias where gold may test Rs 51,300 and take support near Rs 50,100 while silver may test Rs 68,600 and take support near Rs 66,100.

Base metals: Base metals may trade sideways with a bullish bias. Copper can move towards Rs 526 and take support near Rs 517. Zinc may move towards Rs 197 and take support near Rs 192. Nickel may trade bullish bias where it may take support near Rs 1,098 and resistance near Rs 1,136. Aluminum may move towards Rs 147 while taking support near Rs 144.

Energy: Crude oil may trade sideways with a bearish bias where it may take support near Rs 2,740 and resistance is seen near Rs 2,950. Natural gas may again witness selling pressure where resistance is seen near Rs 188 and support near Rs 178.

Spices: Turmeric futures (October) may continue to witness correction towards Rs 5,800-5,700, facing resistance near Rs 6,030. Jeera futures (October) is expected to descend and test Rs 13,900-13,850, facing resistance near Rs 14,160. Dhaniya futures (October) is expected to consolidate in the range of Rs 6,750-6,850 and with a downside bias amid rising arrivals in Ramganj mandi and weak demand.

Oilseeds: Soybean futures (October) is expected to consolidate in the range of Rs 3,840-3,920. Mustard futures (October) is expected to trade sideways in the range of Rs 5,400-5,490. CPO (Sept) is expected to trade on a cautious note in the range of Rs 755-765.

Other commodities: The correction in cotton futures (Oct) may deepen to Rs 17,300-17,200, facing resistance near Rs 17,500. Chana futures (October) will probably continue to enjoy its bull-run and trade in the range of Rs 4,900-5,000. Guar seed futures (Oct) may trade with a bearish bias in the range of Rs 3,875-4,000, while guar gum futures (Oct) may trade sideways to down in the range of Rs 6,085-6,250.

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