Commodity costs traded combined in the course of the week handed by, with many of the commodities in non-agri section stored to slender buying and selling vary throughout the brand new 12 months holidays. The greenback index resumed the downtrend on Monday, buying and selling decrease by 0.29 per cent, supporting commodities to commerce agency. Here’s a have a look at how totally different commodities are behaving in at this time’s market.
Outlook: Bullion
Bullion costs traded larger on Monday with spot gold costs at COMEX was buying and selling up by 1.50 per cent to $1,922 per ounce whereas spot silver costs at COMEX rallied practically 3 per cent to $27.05 per ounce as international markets returned from new 12 months holidays. Bullion costs surged on greenback decline and fall in actual yields with gold hitting two month highs. The worldwide rely of Covid-19 instances is rising regardless of of vaccine rollouts which has stored threat premium excessive in bullion costs, a uncommon parity with fairness indices. We anticipate bullion costs to commerce larger for the day.
Buying and selling Technique:
MCX Gold February resistance for the day lies at Rs. 51,100 per 10 grams with help at Rs. 50,500 per 10 grams.
MCX Silver March help lies at Rs. 68,200 per KG, resistance at Rs. 70,900 per KG.
Outlook: Crude oil
Crude oil costs traded larger with benchmark NYMEX WTI crude oil costs rose by 1 per cent to $49.05 per barrel on Monday morning commerce. Crude oil costs have held regular vary close to the resistance ranges of $50. Crude oil costs are supported by vaccine rollout optimism and expectations that OPEC plus nations might maintain output quota unchanged once they meet at this time. Crude oil costs are anticipated to commerce sideways to up for the day supported by weaker greenback and powerful fairness indices.
Buying and selling Technique:
MCX Crude Oil January help lies at Rs. 3,510 per barrel with resistance at Rs. 3,640 per barrel.
Outlook: Base Metals
Base metals costs traded agency resuming uptrend after witnessing correction in earlier week. The demand restoration hopes from vaccine rollouts and regular manufacturing facility actions from China has pushed costs up on Monday. A lot of the metals traded larger with Nickel, Zinc and Copper main the features. Base metals costs had been buying and selling larger consistent with sturdy fairness indices with greenback decline. Base metals are anticipated to commerce sideways to up for the day on optimistic international cues.
Buying and selling Technique:
MCX Copper January help lies at Rs. 597 and resistance at Rs. 605.
MCX Zinc January help lies at Rs. 215, resistance at Rs. 220.
MCX Nickel January help lies at Rs. 1,240 with resistance at Rs. 1,270
(Tapan Patel is a Senior Analyst (Commodities), HDFC Securities)
By Ravindra Rao
MCX Gold February witnessed a pointy up transfer because it has breached the upper sure of the consolidation zone of Rs 49,800-50,690. The subsequent key resistance above Rs 50,690 exists round Rs 51,250 (100 per cent Fibonacci extension) which may very well be the subsequent value goal. In the meantime value obtained help from 5 and 21 day EMA’s Rs 50,150 and Rs 49,900 respectively. Furthermore the momentum oscillator RSI has sustained above 50 (59.9), supporting the worth rise. Till Rs 50,150 holds, the worth is anticipated to rise in the direction of Rs 51,250.
Technique:
Purchase MCX Gold Feb at Rs 50,600 with a goal of Rs 51,200 and a cease loss at Rs 50,150.
MCX Silver March future additionally adopted the trail of gold and witnessed a pointy rally. In the meantime value is buying and selling contained in the upward sloping channel with decrease band help close to Rs 67,500-67,200. Value obtained help from the bullish crossover of 5 and 21 day EMA (68,138 and 66,445) together with sturdy RSI. On the upside Rs 70,600 is the primary goal for the day (100 per cent Fibonacci extension). Nonetheless value wants to maneuver past Rs 70,600 for prolonged acquire in the direction of Rs 71,600. For the day any dip in the direction of the help zone may entice shopping for.
Technique:
Purchase MCX Silver Mar at Rs 69,000 with a goal of Rs 71,600 and a cease loss at Rs 67,500.
(Ravindra Rao is VP-Head Commodity Analysis at Kotak Securities)