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Outlook: Oil may see profit taking, hit Rs 3,900

Crude oil may face resistance near Rs 4,000 and natural gas may remain on a sideways path.

ETMarkets.com|
Feb 04, 2019, 12.12 PM IST
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An oil pumpjack and a tank with the corporate logo of state oil company PDVSA are seen in an oil facility in Lagunillas
Global crude oil prices were steady on Monday because of tight supply.

Commodity Summary
MCX

GOLD
ALUMINIUM
COPPER
NEW DELHI: Global crude oil prices were steady on Monday because of tight supply after Opec cut oil production and the US sanction against Venezuela played out.

Gold prices slipped on Monday in global markets as risk aversion waned with the progress in US-China trade talks, while a firm dollar kept the bullion under pressure, Reuters reported.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.79 per cent to 817.40 tonnes on Friday from 823.87 tonnes on Thursday.

In the domestic futures market, gold and silver were in negative terrain, but crude oil was trading with nominal gains.

We now tell you how various commodities would behave today, based on projections by brokerage SMC Global Securities.

Bullion: Bullion counter may witness some profit booking at higher levels. Gold (April) can face resistance near Rs 33,550, taking support near Rs 33,150. Silver can face resistance near Rs 40,800 per kg, taking support near Rs 40,200.

Base metals: Base metal prices may trade with a sideways bias. Copper may face resistance near Rs 442 while taking support near Rs 432 on MCX. Zinc can move sideways to a positive path and can test Rs 202. Lead can also trade higher and test Rs 154. Nickel can move on a positive path and hit the Rs 915 level. Aluminium prices can move further higher and reach the Rs 136 mark.

Energy: Crude oil may witness some profit booking as the prices slipped in global markets. Crude oil can test the Rs 3,900 level while facing resistance near Rs 4,000. Natural gas may remain on a sideways path and move in the range of Rs 196-202.

Spices: The bearish trend of turmeric futures (April) is likely to get extended further to test Rs 6,300 amid supply pressure of new crop and estimates of higher output. There is more room for jeera futures (March) to go down further towards Rs 15,700-15,600. Coriander futures (April) are expected to witness lower level buying taking support near Rs 6,545. Cardamom futures (February) may enter a correction mode to test Rs 1,530.

Oilseeds: The recovery seen in mustard futures (February) seems to be temporary and may face resistance near Rs 4,020. CPO futures (February) have been witnessing one-sided rally for the past five weeks and may remain stable in the range of Rs 560-570.

Other commodities: Cotton futures (February) are expected to consolidate in the range of Rs 20,800-21,065. Guar seed futures (February) may trade in a consolidated range of Rs 4,230-4,320 while guar gum futures (February) are expected to remain stable in the range of Rs 8,475-8,700. The trend of chana futures (March) is bearish and hence the short covering may face resistance near Rs 4,250-4,270.

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