MCX Copper is expected to face the hurdle near 708 and weaken towards 700 - ICICI Direct
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Metal’s Outlook:
Bullion Outlook:
• Spot gold is likely to consolidate in the band of $2010 and $2045 ahead of Tuesday’s key US inflation data. Recent revised inflation numbers has paved the way for interest rate cuts and support the bullions to trim its losses. Further military action by Israel on the Gaza would bring safe haven buying in the yellow metal and restrict its downside. However, hawkish comments from the Fed members and strength in the US treasury yields may limit its upside.
• MCX Gold April price is likely to consolidate in the band of 62,100 and 62,600. Only a move above 62,600 would bring fresh buying in the metal and push the price towards 63,000 levels. On the flip side below 62,100 it would weaken towards 61,800.
• MCX Silver is expected to remain in the band of 70,000 and 71,200. Only a move above 71,200 it would turn bullish.
Base Metal Outlook:
• Copper prices are expected to remain under pressure amid pessimistic industrial sentiment in China and demand uncertainty. Rising deflation in the country and contraction in the manufacturing activity would weigh on the demand of the industrial metals. Further sluggish growth outlook and lower demand ahead of the Lunar New year holiday in China would weaken the metal prices further. Meanwhile, persistent decline inventory level in LME could limit more downside in prices.
• MCX Copper is expected to face the hurdle near 708 and weaken towards 700. A move below 700 would open the doors towards 695.
• Aluminum is expected to consolidate in the band of 199 to 202.50. Below 199 it would test next support at 198.
Energy Outlook:
• NYMEX Crude oil is expected to extend its rise towards $78 amid rising Mideast tension after Israel started its military action again in Gaza. Further, rising tension between US and Iraq heightened the risk on global supplies. Meanwhile, rising demand of gasoline in US increased its premium over the crude oil which is likely to strengthen the oil prices to trade higher.
• MCX Crude oil is likely to move towards 6410, as long as it holds above the 6250 levels. Only close above 6410 would push the price further towards 6500 levels
• MCX Natural gas is expected to remain under pressure and slip further towards 148 level as long as it trades below 158 level. Increase in output and weak demand due to warm winter is likely to keep prices under pressure.
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