By Tapan Patel
Commodity costs traded greater on Tuesday with many of the commodities within the non-agro section witnessed shopping for supported by weaker greenback. Bullion costs traded unstable and managed to finish within the inexperienced zone for the day. The greenback index ended decrease than 90 with decline in US treasury yields. Here’s a have a look at how totally different commodities are behaving in at the moment’s market.
Outlook: Bullion
Bullion costs traded agency with spot gold costs at COMEX was buying and selling close to $1,860 per ounce whereas spot silver costs at COMEX was buying and selling regular at $25.53 per ounce within the morning commerce. Bullion costs traded greater on greenback decline with fall in US treasury yields. The ten 12 months US treasury yields eased from 10 months highs on Tuesday boosting shopping for in bullion costs. The revisited pandemic fears raised considerations over financial restoration which additionally supported bullion costs from decrease ranges. We anticipate bullion costs to commerce sideways to up for the day.
Buying and selling Technique:
MCX Gold February resistance for the day lies at Rs. 49,700 per 10 grams with help at Rs. 48,900 per 10 grams.
MCX Silver March help lies at Rs. 65,000 per KG, resistance at Rs. 67,500 per KG.
Outlook: Crude Oil
Crude oil costs traded greater on Wednesday with benchmark NYMEX WTI crude oil costs rallied by greater than 1% to $53.78 per barrel within the morning commerce. Crude oil costs gained on bullish stock information from US API which confirmed that weekly oil stockpiles fell by 5.82 mb in opposition to expectations of two.7 mb draw. Crude oil costs boosted by broad shopping for in commodities over weaker greenback on demand progress optimism. Crude oil costs are anticipated to commerce sideways to up for the day.
Buying and selling Technique:
MCX Crude Oil January help lies at Rs. 3,870 per barrel with resistance at Rs. 3,990 per barrel.
Outlook: Base Metals
Base metals traded greater for the second day with many of the metals buying and selling in inexperienced on demand progress optimism. Nickel costs traded greater with over half a % positive factors, adopted by Copper and Lead. Base metals costs have been supported by greenback decline on US stimulus hopes and fall in US bond yields. The sturdy progress numbers from China side-lined pandemic worries which boosted shopping for in base metals. Base metals are anticipated to commerce sideways to up for the day.
Buying and selling Technique:
MCX Copper January help lies at Rs. 609 and resistance at Rs. 616.
MCX Zinc January help lies at Rs. 217, resistance at Rs. 223.
MCX Nickel January help lies at Rs. 1,260 with resistance at Rs. 1,320.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC Securities)
By Ravindra Rao
MCX Gold February continued to consolidate within the band of Rs 48,900-49,700 because it held the important thing help of Rs 48,600 after final week’s sharp decline. In the meantime worth is buying and selling under the 5 day EMA (49,700) and 21 day EMA (50,010), which might be the important thing resistance zone for the day. On the draw back, under Rs 48,900, the 48,600 mark holds key help adopted by 200 day EMA help at Rs 48,450. On the momentum entrance RSI is buying and selling under 50 (38) suggesting weak point. Value is anticipated to maneuver within the band of Rs 48,900-49,700 with sideways bias.
Technique:
Promote MCX Gold Feb at Rs 49,700 with a goal of Rs 48,900 and a cease loss at Rs 50,050.
MCX Silver March witnessed rebound in the direction of the preliminary resistance Rs 66,680 (5 day EMA) after final week’s sharp decline. In the meantime key resistance for silver futures exists round Rs 67,050 (21 day EMA), adopted by Rs 68,400 which may act nearly as good provide zones. Earlier worth has breached the bullish channel and retraced under 50% Fibonacci stage (64,760) of the up transfer. In the meantime worth is buying and selling under the 21 day EMA (67,050) together with weaker RSI suggesting weak point within the development. On the draw back key help is under Rs 64,760, the 63,140 mark (61.8% Fibonacci stage) holds the important thing stage for the day. For the day worth is anticipated to maneuver within the band of Rs 64,760-67,100 with a sideways bias.
Technique:
Promote MCX Silver Mar at Rs 67,050 with a goal of Rs 64,750 and a cease loss at Rs 68,400.
(Ravindra Rao is VP-Head Commodity Analysis at Kotak Securities)
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