Copper prices are expected to hold its current levels and may move higher on the prospects of demand improvement in China - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Gold is expected to hold the key support at $2910 and may move higher towards $2960 amid increasing safe haven demand. Meanwhile, weakness in US treasury yields would also provide support to the bullions. Uncertainty economic environment and escalating trade tension would increase safe haven demand. On the other hand, diminishing prospects of rate cut in this year would check more upside in the bullions.
* Gold price is hovering near its all time high at $2946. A move above could open the doors towards $2960. Higher concentration of OI in 2950 call strike could provide some resistance, but a move above $2950 could bring short covering rally. MCX Gold April is expected to hold the support Rs.85,500 and move towards Rs.87,000 level.
* Spot silver, is expected rise towards $33.00,as long as it trades above $32. MCX Silver is expected to rise towards Rs.98,200, as long as it holds above Rs.95,600.
Base Metal Outlook
* Copper prices are expected to hold its current levels and may move higher on the prospects of demand improvement in China. The prospects of higher costs on copper imports into the US will likely to provide some support to metal prices. Furthermore, narrowing contango in between LME cash and 3M forwards indicated supply concerns. Meanwhile, sluggish growth in the housing sector would restrict any major upside in base metals.
* MCX Copper February is expected to hold the support at Rs. 860 and may rebound towards Rs.875.
* MCX Aluminum Feb is expected to find support near Rs.259 level and move higher towards Rs.264 level. Tightness in the physical market and depleting inventories would support the metal to stay higher. MCX Zinc Feb is hovering in the band of Rs.267 and Rs.271. A move above Rs.271 would open the doors towards Rs.274 level. Similarly, a move below Rs.267 it would turn weaker.
Energy Outlook
* NYMEX Crude oil is expected to face the hurdle near $73 and move lower towards $70 amid continuous build in US crude oil inventories. Last week API data indicated a surge of 9 million barrels against expectation of 2.8 million barrel increase. Meanwhile, global supply uncertainty and conflicting reports whether OPEC+ will ease or extend output cuts in April would bring volatility in price.
* On the data front, addition of OI has been observed in OTM Calls. On upside $73 would act as key hurdle. Similarly, higher OI concentration at 70 put strike would act as major support. MCX Crude oil March is likely to consolidate in the band of Rs.6150 and Rs.6390 in the near term, Only close below Rs.6150 it would weaken towards Rs.6050.
* MCX Natural gas Feb is expected to hold the support at Rs.360 and move higher towards Rs.385. Forecast of colder weather in US and rising export demand would help prices to trade firm.
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