Commodity outlook: How oil, gold, agri commodities may trade in Wednesday's session
Crude oil may take support near Rs 4,300 while facing resistance near Rs 4,380.
As per Reuters, gold prices edged lower on Wednesday in global markets, retreating from a one-month peak hit in the previous session as optimism surrounding trade talks between Washington and Beijing soothed investor concerns, boosting global stocks and the dollar.
Crude oil may also experience some pressure as the commodity eased in global markets after a surprise rise in the US crude stockpiles.
Here is an outlook on various commodities by brokerage SMC Global Securities for today.
Bullion: As per the brokerage, bullion counter may trade on a volatile path. It may test Rs 32,400 while taking support near Rs 32,100. Silver can test Rs 37,700 while taking support near Rs 37,300.
Base metals: Base metals may witness some short covering at lower levels, the brokerage said. Copper may test Rs 430 while taking support near Rs 420 on MCX. Zinc can test Rs 215 while taking support near Rs 211. Lead can trade in the range of Rs 125-129. Nickel may test Rs 855 while taking support near Rs 820. Aluminium prices may test Rs 151 while taking resistance near Rs 147.
Energy: Crude oil may take support near Rs 4,300 while facing resistance near Rs 4,380. Natural gas may face resistance near Rs 188-189 and can slip lower towards Rs 184.
Spices: Turmeric futures (June) is expected to trade with an upside bias and may breach the resistance near Rs 6,800 to test Rs 6,850-6,900 levels. Jeera futures (June) will possibly maintain its uptrend and may probably witness an upsurge, taking support near Rs 17,455 level. The brokerage advised market participants to trade with caution and avoid taking long positions in cardamom futures (June) as there may be a consolidation in the range of Rs 2,070-2,170 levels.
Oilseeds: There may be an extended buying opportunity in soybean futures (June) near Rs 3,750 levels and the upside may get extended towards Rs 3,810. The weakness in the rupee against the US dollar and improved demand at lower levels may push the counter to Rs 3,760-3,780. The trend of soy oil futures would depend on the signals given by the movement of rupee against the dollar, which is falling owing to escalated trade war talks between US and China, making import costlier. The June contract is expected to trade higher and test Rs 744 if it sustains above Rs 740.50. CPO futures (May) is expected to trade higher to test Rs 529. Mustard futures (June) is expected to take support near Rs 3,870 and trade with an upside bias owing to strong export demand for rapeseed meal from top importing countries such as South Korea, Thailand, Vietnam & Kuwait.
Other commodities: Cotton futures (May) may see a recovery to Rs 21,200-21,300, taking support near Rs 20,520. The June contracts of chana futures are expected to rally further towards Rs 4,580-4,600, taking support near Rs 4,490. Guar seed futures (June) is expected to trade with a positive bias in the range of Rs 4,460-4,520 while guar gum futures (June) may consolidate in the range of Rs 8,970-9,100 levels.