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GLOBAL MARKET ROUND UP

Commodity prices traded under pressure with most of the commodities in non-agro segment ended in red for the day while crude oil prices managed to end in green. Bullion and base metals prices witnessed selling on stronger dollar over FED tapering concerns. Crude oil prices traded up ahead of OPEC plus meeting while natural gas rallied on strong demand on hotter weather. The dollar index rallied by 0.18% above 92 mark for the day.

China’s factory activity expanded at a slightly slower pace in June, as high raw material costs and port disruptions in the export province of Guangdong affected business activity. The official manufacturing Purchasing Manager’s Index eased to 50.9 in June from 51 in May.

Asian stocks rose early Wednesday after U.S. shares closed at a record on economic optimism and signs that vaccines can counter a highly infectious coronavirus strain.

BULLION

Bullion prices traded steady on Wednesday with spot gold prices at COMEX were trading near $1758 per ounce while spot silver prices at COMEX were trading marginal up at $25.78 per ounce in the morning trade. The precious metals halted decline on Wednesday with gold prices traded steady after falling to two month low on Tuesday. Bullion prices witnessed selling on dollar rally on expectations of early FED tapering of bond buying program. Market focus will remain on today’s ADP private payroll numbers in evening session.

We expect bullion prices to trade sideways to down for the day. MCX Gold Aug resistance for the day lies at Rs. 46800 per 10 grams with support at Rs. 46200 per 10 grams. MCX Silver September support lies at Rs. 67000 per KG, resistance at Rs. 69800 per KG.

ENERGY

Crude oil prices traded higher on Wednesday with benchmark NYMEX WTI crude oil prices were trading 0.71% up at $73.50 per barrel in the morning trade. Crude oil prices traded up as OPEC plus nations delayed producers meeting till Friday to resolve differences on output cuts.

Crude oil prices got support from weekly inventory drawdown as API data showed draw of 8.15 mb in last week.

We expect crude oil prices to trade sideways to up for the day awaiting official inventory data in evening session. MCX Crude Oil July support lies at Rs. 5390 per barrel with resistance at Rs. 5520 per barrel.

BASE METALS

Base metals prices traded steady on Wednesday with most of the metals pared some of previous losses. Base metals kept lower trading on stronger dollar and pandemic worries. The rising cases of Delta variant has led to lockdown restrictions in Europe and parts of Australia. Aluminium prices may get support from higher rising cost in China and supply concerns after Russia increases taxes.

Base metals may trade sideways to down on mixed global cues for the day awaiting fresh triggers from US data. MCX Copper July support lies at Rs. 710 and resistance at Rs. 725. MCX Zinc July support lies at Rs. 234, resistance at Rs. 242. MCX Nickel July support lies at Rs. 1320 with resistance at Rs. 1390.

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