Commodity costs traded increased on Tuesday as non-agro commodities prolonged good points for the second day of the week. Crude oil costs rallied greater than 5 per cent on geopolitical danger and OPEC output cuts. Bullion costs rallied on protected haven shopping for supported by weaker greenback. The greenback index ended over half a % right down to 89.44 on Tuesday. Here’s a have a look at how totally different commodities are behaving in at present’s market.
Outlook: Bullion
Bullion costs traded off the current highs with spot gold costs at COMEX was buying and selling close to $1,946 per ounce whereas spot silver costs at COMEX was buying and selling close to $27.36 per ounce. Bullion costs continued to witness sturdy inflows on pandemic worries and weaker greenback. The gold ETF holdings at SPDR gold shares rose to 1,187 tonnes. The hypothesis over US election runoff in Georgia might preserve bullion costs unstable for the day. We count on bullion costs to commerce sideways to up for the day.
Buying and selling Technique:
MCX Gold February resistance for the day lies at Rs. 52,200 per 10 grams with assist at Rs. 51,100 per 10 grams.
MCX Silver March assist lies at Rs. 69,200 per KG, resistance at Rs. 71,500 per KG.
Outlook: Crude oil
Crude oil costs prolonged good points on Wednesday after rallying for five per cent in earlier commerce with benchmark NYMEX WTI crude oil costs was buying and selling above $50 per barrel in morning commerce. Crude traded increased after Saudi Arabia pledged to chop oil output by 1 mb per day voluntarily in February and March whereas OPEC plus nations saved output quota unchanged. The geopolitical tensions boosted shopping for in oil costs on experiences that Iran seizes South Korean tanker. Crude oil costs are anticipated to commerce sideways to up for the day awaiting official stock knowledge in night session.
Buying and selling Technique:
MCX Crude oil January assist lies at Rs. 3,590 per barrel with resistance at Rs. 3,720 per barrel.
Outlook: Base Metals
Base metals traded agency protecting the higher buying and selling vary on Wednesday with Copper and Zinc costs traded with good points. Base metals witnessed sturdy shopping for this week supported by greenback decline on demand progress optimism with optimistic manufacturing facility output knowledge from China and US. Copper costs obtained extra assist from provide disruption fears from Peru over protest. Base metals are anticipated to commerce sideways to up for the day.
Buying and selling Technique:
MCX Copper January assist lies at Rs. 612 and resistance at Rs. 620.
MCX Zinc January assist lies at Rs. 219, resistance at Rs. 223.
MCX Nickel January assist lies at Rs. 1,250 with resistance at Rs. 1,310.
(Tapan Patel is Senior Analyst (Commodities) at HDFC Securities)
By Ravindra Rao
MCX Gold February has been buying and selling within the upward sloping channel after breaching the important thing resistance of Rs 51,200. In the meantime value nearly moved close to the upper sure of the channel, the place the worth would possibly resist. Furthermore RSI on the every day charts is at 79.50 indicating overbought situations. Nonetheless the development remains to be on the up aspect, supported by a bullish crossover of 5 (50,950) and 21 day EMA (50,205) together with sturdy momentum. Dips would possibly entice shopping for for the close to time period.
Technique:
Purchase MCX Gold Feb at Rs 51,200 with a goal of Rs 51,850 and a cease loss at Rs 50,900.
MCX Silver March future has moved out of the consolidation zone with the breakout of the symmetrical triangle and key resistance of Rs 69,800. In the meantime value is buying and selling contained in the upward sloping channel with decrease band assist close to Rs 68,500-68,000. Value obtained assist from the bullish crossover of 5 and 21 day EMA (69,467 and 67,142) together with sturdy RSI. On the upside Rs 71,650 is the important thing resistance (Earlier High). So value wants to maneuver past to increase its achieve additional in direction of the subsequent degree at Rs 72,600.
Technique:
Purchase MCX Silver Mar at Rs 69,450 with a goal of Rs 71,600 and a cease loss at Rs 68,400.
(Ravindra Rao is VP-Head Commodity Analysis at Kotak Securities)