MCX crude oil November fut. is having resistance at 7540, the 100 dayssimple moving average and support at 7200 - HDFC Securities
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GLOBAL MARKET ROUND UP
Bullion has been relatively stable this week, hovering near $1,650 to $1,660 an ounce. Copperslipped along with aluminum, trimming some gains made earlier in the week as the US dollar rebounded from a three-week low and traders weighed declining inventories. Crude is on course to gain in October following a run of four monthly declines as slowdown concerns escalated.
The dollar rose against most of its G-10 peers amid a rally in bonds spurred by weaker-than-expected US inflation and durable goods data.
Asian shares dropped following sharp swings on Wall Street as investors contended with mixed US economic data and disappointing results from tech giants
The European Central Bank lifted its policy rate Thursday by 75 basis points, in line with expectations and signalled more tightening ahead. But ECB officials weren’t unanimous about the size of the increase
US Gross domestic product data showed that the US economy rebounded after two quarterly contractions, but also highlighted that consumer spending remains under pressurebecause of inflation
Market still expects the Fed to hike by three-quarters of a percentage point for the fourth time in a row when it meets next week. But with recent data highlighting the effects of sharp rate hikes on the economy, investors expect the FOMC to slow the pace of tightening after November’s meeting.
Commodity Daily BULLION
Gold isset for itssecond weekly gain astradersseek clues on the Federal Reserve’sfuture interest-rate hike path amid mixed economic data. Bullion has been relatively stable this week, hovering near $1,650 to $1,660 an ounce. Gold pricesremained steady against a rebounding dollar following data that suggested the US economy continuesto hold up in spite of tighter monetary policy
Trading Strategy: MCX Gold Dec. fut. has been consolidating between 50 and 200 days exponential moving average this week. It hasresistance at 50900 and crossing the same will pave way for 51600 while falling below 50450 will push it toward the month‘s low. MCX Silver Dec fut. has support at 57270 and resistance at 58800. The near-termbiasfor bullion remains neutralto bearish.
Commodity Daily ENERGY
Oil is headed for a weekly gain, supported by tightness in petroleum product markets, robust US exports, and a weakening US dollar. WTI Oil eased below $89 a barrel in early Asian trade but remains about 4% higher this week. Total US petroleum exports have hit a record, while domestic fuel inventories are at historic seasonal lows. Diesel marketsin both the US and Europe are flashing signs of tightness
Trading Strategy: MCX crude oil Nov. fut. is having resistance at 7540, the 100 dayssimple moving average and support at 7200. The short-term trend for crude oil is bullish and the breaking of the 7712 will confirm the medium-term bullish trend. MCX Natural Gas Nov. fut resisted at 536, the 200 DSMA and took support at 450. The breaking of 450 will confirm the double bottombreak down.
Commodity Daily BASE METALS
After a sharp up move on Wednesday, Industrial metal prices ended mixed on Thursday with Zinc and Aluminium ending in the red while copper bucked the trend by ending on a positive note. Sentiment towards industrial metalsimproved as data on Thursday showed the U.S. economy wasfaring better under the rate hike regime than previously thought. Prices of the red metal largely shrugged off concerns over sluggish demand in major importer China, with a focus now turning to a potential supply crunch. Slowing production in Chile and U.S. sanctions against some Russian producers are widely expected to tighten copper supply in the coming months.
Trading Strategy: MCX Copper’s Technical set-up isstrong asit istrading above itsshort-term moving averages. Immediate support for MCX November is placed at Rs. 660 and resistance at Rs. 666 and 670. MCX Zinc Nov support lies at Rs. 268, resistance at Rs. 274. MCX Aluminium Nov support lies at Rs. 198 with resistance at Rs. 206. Basemetals prices are likely to trade firm today
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