MCX Copper is expected to move in the band of 702 and 712 - ICICI Direct
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Metal’s Outlook:
Bullion Outlook:
• Spot gold is likely to weaken further towards $1975 amid strong dollar and higher treasury yields. Sticky inflation numbers in the US might force the Fed members to remain hawkish and force them to keep the rates higher in the fight against inflation. Further, diminishing probability of rate cut in March and May would also weigh on the bullions. Meanwhile, safe haven buying in the yellow metal amid geopolitical unrest in Mideast would restrict more downside in price
• MCX Gold April price is likely to weaken towards 61,000 as long as it trades under 62,000. Only a move below 61,000 would weaken the price further towards 60,600.
• MCX Silver is expected to remain under pressure and slide further towards 68,400 as long as it holds below 70,600.
Base Metal Outlook:
• Copper prices are expected to trade weaker amid strong dollar and sluggish growth outlook in China’s industrial activity. Further, growing prospects of higher interest rate in major economies would hurt the demand prospects and limit any major upside in the red metal. Meanwhile, persistent decline in inventory level in LME could limit more downside in prices. Again, any new measure from China to support the economy would also help the metal to recover its earlier losses.
• MCX Copper is expected to move in the band of 702 and 712. Only a sustained move above 712 would push the price towards 716. On the flip side a move below 702 would weaken the price 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 face the hurdle near $79 and trim its earlier gains on expectation of strong dollar and rise in crude oil inventories. Diminishing prospects of interest rate cuts by the Federal Reserve would weigh on the prices. Meanwhile, forecast of rise in crude oil stocks would check its upside, but decline in oil product stocks could limit its downside. Further, persistence supply concerns due to unrest in the Mideast would favor the prices to stay above $75 mark.
• MCX Crude oil is likely to face the hurdle near 6550. Only a move above 6550 it would open the doors towards 6660. Alternatively, if it fails to breach 6550, then price would slip towards immediate support at 6350.
• MCX Natural gas is expected to remain under pressure and slip further towards 133 level as long as it trades below 148 level.
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