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Commodity outlook: Profit booking at higher levels in bullion counters

Copper may slip lower towards Rs 432 while facing resistance near Rs 442.

ETMarkets.com|
Oct 07, 2019, 11.40 AM IST
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Agencies
India gold smuggling slowed by election seizures of cash, bullion
Gold (Dec) can take support near Rs 38,200 and face resistance near Rs 38,600 while silver can test the Rs 45,000 level while taking support near Rs 46,000.
Ahead of the trade talks between the US and China, base metals and precious metals traded with gains on Monday.

Delegations from US and China will meet on Thursday for a two-day dialogue. Hopes of a breakthrough have diminished following a report that Chinese officials might not be as willing to bend. SMC Global expects profit booking at higher levels on the bullion counter, but predicts sideways movement in base metals.

Here are its expectations for the day:

Bullion: The bullion counters may trade with a sideways bias, but there could be profit booking at higher levels later in the day. Gold (Dec) can take support near Rs 38,200 and face resistance near Rs 38,600 while silver can test the Rs 45,000 level while taking support near Rs 46,000.

Base metals: Base metals may trade sideways. Copper may slip lower towards Rs 432 while facing resistance near Rs 442. Zinc can trade in a range, as it faces resistance near Rs 184 while taking support near Rs 180. Lead may trade sideways with an upside bias, as it can test Rs 158 while taking support near Rs 153. Nickel may trade with an upside bias, as it can test Rs 1,300 level while taking support near Rs 1,250. Aluminum may test Rs 136 level while taking support near Rs 132.

Energy: Crude oil may witness some short covering at lower levels. It may test Rs 3,780 level while taking support near Rs 3,700. Natural gas can trade with a weak bias and can move towards Rs 163 while facing resistance near Rs 167.

Spices: In the days to come, more downside can be seen in turmeric futures (Oct) as it can test Rs 5,800. Jeera futures (Oct) may consolidate in the range of Rs 16,700-16,900, with upside getting capped. Dhaniya futures (Oct) may continue to face resistance near Rs 5,800 and trade with a downside bias. Cardamom futures (Nov) may witness an upside momentum towards Rs 3,100-3,200.

Oilseeds: Soybean futures (Oct) may trade sideways to down in the range of Rs 3,675-3,820. Mustard futures (Oct) may trade higher towards 4,010-4,020. Soy oil futures (Oct) may trade with a downside bias in the range of Rs 756-759 following the tepid buying in wholesale markets. CPO futures (Oct) is looking weak as it may plunge towards Rs 542 taking negative cues from the international market.

Other commodities: Cotton futures (Oct) is expected to trade with an upside bias taking support near Rs 19,600. Chana futures (Oct) is expected to trade range bound within Rs 4,260-4,350. Mentha oil futures (Oct) is likely to consolidate in the range of Rs 1,200-1,230 amid a rise in supply from major producing regions in anticipation of lucrative returns.

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