Commodity Outlook: How will bullion, metals & spices trade today
The bullion counter may remain sideways with a negative bias.
Commodity Summary MCX
In the commodities market, Brent crude futures gained amid ebbing of recession concerns.
That’s the trade setup for commodities back home. Here’s how different commodities are expected to fare in the domestic futures market today based on projections made for various commodities by brokerage SMC Global Securities.
Bullion: The counter may remain sideways with a negative bias. Gold prices dipped on Monday on a stronger US dollar and a recovery in equities markets, as hopes of stimulus from major central banks eased fears of a steep global economic downturn. Gold (Oct) can dip towards Rs 37,600 but will face resistance near Rs 38,100, while silver (Sep) can dip towards Rs 43,300 and has resistance near Rs 44,000.
Base metals: Base metals may trade positive as stimulus from central banks around the world and steps taken by major economies such as Germany and China soothed investor fears of a sharp global economic slump. Copper may trade sideways taking support near Rs 445 but it has resistance near Rs 452. Zinc can recover to Rs 186, taking support near Rs 182. Lead may recover towards Rs 155 by taking support near Rs 151. Nickel may move upwards to Rs 1,150 by taking support near Rs 1,120. Aluminium may test Rs 142 level by taking support near Rs 139.
Energy: Crude oil may see some upside as prices rose on Monday in global markets following a weekend attack on a Saudi oil facility by Yemeni separatists, although the gains were capped by an unusually downbeat OPEC report that stoked concerns about demand growth. Crude oil may move towards Rs 3,980 while taking support near Rs 3,900. Natural gas can dip towards Rs 154 but has resistance near Rs 158.
Spices: Turmeric futures (Sept) are expected to trade with an upside bias in the Rs 7,020-7,200 range. Jeera futures (Sept) may trade with a downside bias, descending towards the Rs 16,700-16,600 range. Dhaniya futures (Sept) are likely to crash further towards Rs 5,800 for the fourth consecutive week. Cardamom futures (Sept) could witness profit booking near Rs 3,300 level.
Oilseeds: Soybean futures (Sept) are expected to trade with an upward bias and take support near Rs 3,620 level. Soy oil futures (Sept) are likely to trade in the range of Rs 753-758. CPO futures (Aug) may take support near Rs 545 on the back of firm cues from overseas markets. Mustard futures (Sept) may show an upward momentumtowards Rs 4,000-4,020 if they trade & sustain above Rs 3,980, taking support near Rs 3,930 level.
Other commodities: Cotton futures (Aug) are expected to trade in the Rs 20,550-20,780 range, taking positive cues from the international market. Guar seed futures (Sept) are looking bullish and may test the Rs 4,500-4,550 range. Guar gum futures (Sept) may trade sideways in the Rs 8,500- 8,750 range. Castor seed futures (Sept) will probably witness another round of consolidation for the fourth consecutive week in the Rs 5,615-5,700 range.