Commodity outlook: Crude oil gains; here’s how others may fare today

Most metal and bullion futures contracts were trading with losses on Friday amid a virus scare in China that threatened world travel.

The WHO said on Thursday that the new coronavirus that has emerged in China and spread to several other countries does not yet constitute an international emergency.

Gold and silver fell 0.5 per cent each while copper was down 0.2 per cent. Nickel was trading near the flat line. Crude oil was up 1.25 per cent to Rs 3,980, but natural gas slipped 0.87 percent to Rs 137.20.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counter may witness some profit booking. Gold can face resistance near Rs 40,500, while silver may trade range bound within Rs 46,100-46,500 range.

Base metals: Base metals may trade with a weak bias. Copper may dip towards Rs 444-440 while facing resistance near Rs 449. Zinc can further dip towards Rs 180-179 while facing resistance near Rs 182. Lead may trade with a sideways bias facing resistance near Rs 152 and support near Rs 150. Nickel may remain sideways as it can take support near Rs 995-990 and face resistance near Rs 1,010.

Energy: Crude oil can dip towards Rs 3,850 while facing resistance near Rs 4,000. Natural gas may consolidate in the range of Rs 135-143.

Spices: Turmeric futures (Mar) are expected to trade with a downside bias and test Rs 6,100-6,050, if they break Rs 6,178. Jeera futures (Mar) may trade sideways in the range of Rs 14,650-14,850 and the short covering may remain capped. Dhaniya futures (Apr) are expected to be bearish and test Rs 6,600-6,550.

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Oilseeds: Soybean futures (Feb) may continue to consolidate in the range of Rs 4,125-4,190. Mustard futures (Feb) are expected to fall further and test Rs 4,160-4,150, if it breaks Rs 4,175. CPO futures (Feb) are expected to consolidate in the range of Rs 780-795, while soy oil futures (Feb) will probably take support near Rs 869 and witness recovery till Rs 880-885.

Other commodities: Cotton futures (Jan) will possibly fall further towards Rs 19,400-19,300, taking negative cues from the international market. Chana futures (Mar) may trade with a downside bias and face resistance near Rs 4,150-4,160. Mentha oil futures (Jan) may go down further to test Rs 1,210-1,200.



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