MCX Copper May seen rising to Rs.1310 above Rs.1285; break may target Rs.1320-Rs.1325 - ICICI Direct
Bullion Outlook
* Spot Gold is likely to slip back towards $4650 level amid strong dollar and rise in US treasury yields. Further, prices may slip as renewed tension in Middle East after Tehran seized 2 vessel in Strait and ongoing blockage in Strait of Hormuz, refueled concerns over rising inflation and monetary tightening across major economies. Additionally, investors will remain cautious ahead of slew of economic data from major economies and get cues on interest rate trajectory. Furthermore, Federal Reserve nominee Kevin Warsh's comments at a Senate confirmation hearing sounded slightly hawkish. He said he has made no promises to Trump about cutting interest rates.
* MCX Gold June is expected to face resistance near Rs.154,000 level and slip towards Rs.151,000- Rs.150,000 level.
* MCX Silver May is expected to slip towards Rs.242,000- Rs.240,000 level as long as it stays below Rs.252,000 level
Base Metal Outlook
* Copper prices are expected to trade with positive bias amid rise in risk appetite in the global markets and fall in inventories at LME registered warehouses. Moreover, prospect of stronger demand in China and restocking activity ahead of labor day holiday would be supportive for the prices. Yangshan copper premium, a gauge of China's appetite for imported materials, stood at $68 a ton, signaling demand. Furthermore, Gulf supply disruptions and China's planned sulfuric acid export restrictions will impact metal industry as its essential for some copper extraction.
* MCX Copper May is expected to rise towards Rs.1310 level as long as it stays above Rs.1285 level. A break above Rs.1310 level prices may be pushed towards Rs.1320- Rs.1325 level
* MCX Aluminum May is expected to rise towards Rs.375 level as long as its stays above Rs.366 level. MCX Zinc May is likely to find support near Rs.343 level and rise towards Rs.350 level
Energy Outlook
* NYMEX Crude oil is likely to trade with positive bias as tension in Middle East flared up again after Tehran seized 2 vessel in Strait of Hormuz and at least 3 container ships were hit by gunfire. Additionally, prices may rally on supply concerns as shipping activity through the Strait of Hormuz, remained limited. US navy is maintaining its blockade of Iran’s ports and shore, which Iran consider as act of war. Moreover, prices may gain amid stalled peace talk between US and Iran. Furthermore, surprise draws in gasoline and distillate inventories would be supportive for the prices. EIA report showed U.S. gasoline stocks fell by 4.6 million barrels, while, distillate stockpiles dropped by 3.4 million barrels
* MCX Crude oil May is likely to rise towards Rs.8900- Rs.9000 level as long as it stays above Rs.8500 level.
* MCX Natural gas May is expected to rise towards Rs.275- Rs.280 level as long as it stays above Rs.263 level.
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
