Commodity costs traded with cuts on Friday after buying and selling agency within the earlier session. On Thursday, bullion costs continued a brief restoration whereas base metals witnessed some shopping for. Crude oil costs ended increased on demand progress optimism. Here’s a take a look at how totally different commodities are behaving in right this moment’s market.
Outlook: Bullion
Bullion costs traded marginally down with spot gold worth at COMEX was buying and selling close to $1718 per ounce whereas spot silver worth at COMEX was buying and selling half a % down at $25.97 per ounce within the morning commerce. Bullion costs witnessed restoration on softening of bond yields and weaker greenback. The upper inflation fears drew the traders out of greenback to valuable metals. We count on bullion costs to commerce sideways to down for the day.
Buying and selling Technique:
MCX Gold April resistance for the day lies at Rs 45100 per 10 grams with assist at Rs 44500 per 10 grams.
MCX Silver Might assist lies at Rs.65000 per KG, resistance at Rs 68500 per KG.
Outlook: Crude Oil
Crude oil costs traded decrease with benchmark NYMEX WTI crude oil costs had been buying and selling 0.23% down at $65.85 per barrel within the morning commerce. Crude oil costs pared some earlier positive factors on stronger greenback. Crude oil costs had been up on gasoline demand restoration hopes on US stimulus bundle. Crude oil costs are anticipated to commerce sideways to down for the day.
Buying and selling Technique:
MCX Crude Oil March assist lies at Rs. 4720 per barrel with resistance at Rs. 4860 per barrel.
Outlook: Base Metals
Base metals complicated traded down on Friday with many of the metals pared earlier positive factors on China demand issues and stronger greenback. Copper costs perhaps restricted on the draw back on provide crunch fears. Base metals are capped upside regardless of of optimistic world cues on coverage tightening in China which can damage demand progress. Base metals are anticipated to commerce sideways to down for the day.
Buying and selling Technique:
MCX Copper March assist lies at Rs 670 and resistance at Rs 685.
MCX Zinc March assist lies at Rs 213, resistance at Rs 221.
MCX Nickel March assist lies at Rs 1150 with resistance at Rs 1190.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC Securities)
By Ravindra Rao
MCX Gold April future has prolonged its rebound as costs moved above the 5 day EMA at Rs 44810. Furthermore, an intermediate regression channel breakout has additionally strengthened the rally in gold. From quick time period perspective, key resistance for gold April future exists round Rs 45800 (21 Day EMA) and key assist holds round Rs 44100. The power index RSI has rebounded from the oversold zone to at the moment close to 35. Constructive divergence between RSI and worth has additionally strengthened the restoration in worth. Nonetheless, it must maintain above 30 to rebuild the momentum in worth restoration. Going by the above evaluation, worth is predicted to maneuver within the band of Rs 44200-45200 with sideways to optimistic bias. Solely shut above Rs 45200, would lengthen its positive factors additional in direction of Rs 45800.
Technique:
Purchase MCX Gold April at Rs 44500 with a goal of Rs 45150 and a cease loss at Rs 44100.
MCX Silver Might future has retraced 50% of the current fall from Rs 70700 to Rs 64880 on this week. In the meantime, key resistance for Might future exists round Rs 68560 (61.8% Fibonacci degree), which additionally coincides with the upper band of the intermediate downward channel. On the draw back Rs 65800 and Rs 64800 holds main helps within the coming classes. On the momentum entrance, RSI is buying and selling round 50(48) suggesting sideways bias. Therefore for the day, worth is predicted to maneuver within the vary of Rs 65800-68560 with sideways bias. Solely a sustained transfer out of the vary might convey extra readability on the path in Silver costs.
Technique:
Purchase MCX Silver Might at Rs 65800 with a goal of Rs 68200 and a cease loss at Rs 64800.
(Ravindra Rao is VP-Head Commodity Analysis at Kotak Securities)