MCX Aluminum November is expected to move in the band of Rs 269 and Rs 274 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot Gold is expected to hold its ground and move higher amid strong demand from the global central banks. Furthermore, prices would get support from strong investment demand due to economic uncertainty and tariff concerns. Meanwhile, strong dollar and growing expectation of a pause in December rate cut from the US Fed could restrict any major up move in the bullion prices. As per the CME Fed-watch tool December rate cut probability has remained under 75%.
* Spot gold is likely to remain volatile and move in the band of $3960 and move towards $4060. Only move above $4060 it would turn bullish and move towards $4100. MCX Gold December is expected to rise towards Rs 122,800 level as long as it hods above Rs 118,800 level
* MCX Silver Dec is expected to hold the key support at Rs 145,000 level and move higher towards Rs 149,800 level
Base Metal Outlook
* Copper prices are expected to correct further on demand uncertainty from the top consumer China. Weaker than expected manufacturing activity in China would hurt demand prospects. October manufacturing activity contracted to its lowest level in this year, signaling weak demand. Meanwhile, depleting inventory levels in LME and expectation of fresh round of stimulus from China would limit the downside in metal prices.
* MCX Copper November is expected to slip towards Rs 1005, as long as it stays under Rs 1020 level.
* MCX Aluminum November is expected to move in the band of Rs 269 and Rs 274 level. Only below Rs 268, it would turn weaker towards Rs 266.
* MCX Zinc November looks to correct towards Rs 296 as long as it trades under Rs 304.
Energy Outlook
* NYMEX Crude oil expected to move in a tight range ahead of the OPEC+ meeting on this weekend. OPEC+ is expected to increase the oil output by 137,000 barrels per day in December. Increasing production from OPEC is likely to counter the supply concerns amid sanction on Russian energy supplies. Meanwhile, US-China trade optimism and depleting US crude oil inventories would provide support to oil prices.
* On the data front, a strong put base at $60 strike indicates NYMEX crude to hold strong support. On the upside $65 call strike has higher OI concentration which may act as key hurdle. MCX Crude oil November is likely to find support near Rs 5250 and rebound towards Rs 5490. Only below Rs 5250 it would turn weaker towards Rs 5150,
* NYMEX Natural gas prices are trading higher on forecast of colder US weather. MCX Natural gas November future is expected to rise towards Rs 360, as long as it stays above Rs 340 level.
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