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    10 commodity buy-sell strategies that may deliver good returns in near term

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    Commodity trading strategies
    1/11

    Commodity trading strategies

    Energy counters are seeing a lot of action due to bad weather and output cuts, while metals are also not devoid of activity. Here are some of the commodity buy-sell strategies that may provide decent returns during the week:

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    Gold | Sell | Target Price: Rs 44,500
    2/11

    Gold | Sell | Target Price: Rs 44,500

    The trend is still bearish for gold. Prices are hovering near Rs 46,000 now. The RSI on the daily and weekly charts is showing a weak momentum which is a bearish sign. Breaking below the recent lows, prices may head towards Rs 45,000 level in the coming days. Sell gold (Apr) in the range of Rs 46,300-46,500 for a target of Rs 45,000-44,500 with stop loss above Rs 47,200.

    (Analyst: NS Ramaswamy, Head of Commodities, Ventura Securities)

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    Natural Gas | Buy | Target: Rs 260
    3/11

    Natural Gas | Buy | Target: Rs 260

    On the daily chart, MCX Natural Gas prices have broken above the key resistance level and are likely to head higher. The RSI on daily and weekly charts is showing strength in the momentum which is considered a bullish sign. Prices are likely to cross the Rs 250 level in coming days. Buy natural gas (March) in the range of Rs 220-215 for a target of Rs 245-260. Stop loss suggested at Rs 200.

    (Analyst: NS Ramaswamy, Head of Commodities, Ventura Securities)

    Agencies
    Copper | Buy | Target: Rs 700
    4/11

    Copper | Buy | Target: Rs 700

    As per our last week’s view, copper prices have reached the target price of Rs 650. Prices are in a strong uptrend and are likely to continue the trend on the upside. Any dip in prices can be viewed as a buying opportunity in the counter. Buy copper (Feb) in the range of Rs 660 to Rs 655 for a target price of Rs 690-700 with stop loss placed below Rs 640.

    (Analyst: NS Ramaswamy, Head of Commodities, Ventura Securities)

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    Castor Seed | Sell | Target: Rs 4,150
    5/11

    Castor Seed | Sell | Target: Rs 4,150

    Technically, castor seed is looking weak on daily charts as prices have started trading below key averages. The immediate support stands near Rs 4,330. Breaking below this level we may see prices heading lower towards Rs 4,150. Sell castor seed (Mar) below Rs 4,330 for a target price of Rs 4,150. Place a stop loss at Rs 4,450.

    (Analyst: NS Ramaswamy, Head of Commodities, Ventura Securities)

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    Silver | Buy | Target: Rs 71,500
    6/11

    Silver | Buy | Target: Rs 71,500

    Traders should go for buy on dips strategy in silver where one should look for entry around Rs 67,300 while keeping a stop loss around Rs 65,500 and target of Rs 71,500. Silver is trading volatile nowadays but it is not the commodity to short until and unless it give a sustainable closing below Rs 65,000 on MCX and $23 in the international market.

    (Kshitij Purohit, Lead-Commodities & Currency at CapitalVia Global Research)

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    Crude Oil | Buy | Target: Rs 4,520
    7/11

    Crude Oil | Buy | Target: Rs 4,520

    Traders should wait for buy on dips opportunity from Rs 4,250-4,200 in MCX crude oil where one should keep stop loss below Rs 4,040, with a target of Rs 4,520. Crude oil prices are showing signs of exhaustion after the inventory data came. However, we are close to the high range now. Crude is likely to continue to see bullish pressure towards Rs 4,400. Once it give a close above Rs 4,470, it may move towards Rs 4,800 level in the coming month.

    (Kshitij Purohit, Lead-Commodities & Currency at CapitalVia Global Research)

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    Nickel | Buy | Target: Rs 1,367
    8/11

    Nickel | Buy | Target: Rs 1,367

    Traders should look forward to a buy-on-dips strategy for MCX Nickel where we may find some buying opportunities from the previous week’s support around Rs 1,327-1,330. The target should be around Rs 1,365–1,367, whereas one must maintain a stop loss above Rs 1,317. Nickel gave a fresh high around Rs 1,360 without strong volumes in the previous week.

    (Kshitij Purohit, Lead-Commodities & Currency at CapitalVia Global Research)

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    Zinc | Buy | Target: Rs 229
    9/11

    Zinc | Buy | Target: Rs 229

    Traders may buy zinc on dips. The optimum range to make any buy position should be around Rs 219. For any such buy position, the analyst is anticipating a target of Rs 227-229. He recommends a stop loss at Rs 216. Technically, Zinc futures has traded within a rising channel in a 4-hour chart since last week and made a double bottom near Rs 204 on a 4-hourly chart. The immediate support in MCX Zinc futures is its 110-SMA on 1-hourly chart placed at Rs 219.20, whereas Rs 226.60 should be considered as a strong resistance point.

    (Kshitij Purohit, Lead-Commodities & Currency at CapitalVia Global Research)

    Reuters
    Lead | Buy | Target: Rs 177
    10/11

    Lead | Buy | Target: Rs 177

    Traders should go for buy-on-dips strategy in lead futures as we have seen prices rebounding from strong support points and gave successful closing above resistance levels of Rs 164-165. The analyst recommends buying lead at around Rs 167.70-168.20 for a target price of Rs 174.177. A stop loss is recommended at Rs 163.70. The support point is at Rs 160 while the immediate resistance is at Rs 172.75. If it breaks the resistance level, prices can go towards Rs 177.

    (Kshitij Purohit, Lead-Commodities & Currency at CapitalVia Global Research)

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    Aluminum | Buy | Target: Rs 177
    11/11

    Aluminum | Buy | Target: Rs 177

    Traders should look forward to buying on dips in aluminium futures. An ideal buying position should be initiated around Rs 165.20-165.70. The optimum target should be around Rs 177. The analyst recommends a stop loss around Rs 164.10. Aluminium prices have remained positive as we have seen double-bottom formation on the daily chart near Rs 160-159.50 after making multiple dips around Rs 160.80-160.75. One should consider Rs 159.50 as a support point.

    (Kshitij Purohit, Lead-Commodities & Currency at CapitalVia Global Research)

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