MCX Copper Aug is expected to rise back towards 784 level as long as it stays above 768 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Intl gold is expected to rise further towards $2450 level amid expectation of correction in dollar and softening of US treasury yields across curve. Yields and dollar may ease on rising expectations for a considerable interest rate cut from the US Fed in September meeting. Moreover prices may rally as bullion is considered a hedge against geopolitical and economic uncertainties. Investors fear that Iran and its allies may retaliate and strike Israel for killing senior members of Hamas and Hezbollah. Higher OI concentration at call strike 2450 would act as stiff resistance, while on put side, the 2400 strike holds maximum open interest, providing support to the prices. Intl gold is expected to rise further towards $2450 level (20-Day EMA) as long as its stays above $2405 level (20-Day EMA)
* MCX Gold Oct is expected to rise further towards 70,300 level as long as it stays above 69,400 level
* MCX Silver September is expected to rise further towards 81,700 (10-Day EMA) level as long as it stays above 79,400 level
Base Metal Outlook
* Copper prices are expected to trade with positive bias amid rise in risk appetite in the global markets and expectations for larger interest rate cuts by the US Federal Reserve later this year. Additionally, China’s Yangshan premium, an indicator of import demand, rose to $55 per ton yesterday, indicating recovery in demand. Moreover, prices may move north on supply concern as potential strike at Escondida, the world's biggest copper mine, is still looming.
* MCX Copper Aug is expected to rise back towards 784 level as long as it stays above 768 level. A break above 784 level prices may rise further towards 789 level (10-day EMA)
* Aluminum is expected move north towards 215 level as long as it stays above 211 level. A break above 215 level prices may rise further towards 217 level
Energy Outlook
* NYMEX Crude oil is expected to rise further towards $77.0 level on optimistic global market sentiments and supply concerns. Further, prices may rally on escalating tension in Middle East and as recent job data from US calmed demand concerns. Additionally, Libya's National Oil Corp. declared force majeure at its Sharara oilfield from Wednesday, company had gradually reduced the field's production because of protests. Further, higher OI concentration at put strike $75 would act as strong support for the prices, while on call side rise in OI at strike $77 would act as stiff resistance. NYMEX Crude oil is likely to rise towards $77 level as long as it trades above $75 level
* MCX Crude oil is likely to move north towards 6550 level as long as it stays above 6340 level (200-Day EMA)
* MCX Natural gas Aug is likely to rise towards 190 level as long as it stays above 172 level amid smaller than expected build in inventories for last week
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