MCX Copper Nov is expected to rise towards Rs 1016 level as long as it stays above Rs 1004 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot Gold is likely to rise towards $4170 level amid weakness in dollar and softening of US treasury yields across curve. Further, re-opening of US government will unleash a flood of economic data, which may provide much needed clarity on the state of economy. If the data continues to point slowing economy, then it would increase bet for another rate cut by US Fed in December meeting. As per CME FedWatch tool traders are now pricing a 68% chance of a rate cut in December, up from about 62% day ago. U.S Senate has approved a bill that would end the longest government shutdown in history. Now it heads to the Republican-controlled House of Representatives. Moreover, strong central bank demand for gold will be supportive for the prices
* MCX Gold Dec is expected to rise back towards Rs 126,000 level as long as it stays above Rs 123,000 level
* MCX Silver Dec is expected to rally towards Rs 156,500 level as long as it stays above Rs 152,000 level
Base Metal Outlook
* Copper prices are expected to trade with a positive bias on weak dollar, rise in risk appetite in the global markets and concerns over tighter supply. Further, prices may rally on optimism that US government shutdown may end soon and as China unveiled more measures to support growth. China's central bank said that it would maintain "appropriately loose" monetary policy conditions. On top of it, China's cabinet unveiled new policy measures involving private capital investments in infrastructure projects and the low-altitude economy.
* MCX Copper Nov is expected to rise towards Rs 1016 level as long as it stays above Rs 1004 level. A break above Rs 1016 level may open doors for Rs 1020-Rs 1025 level
* MCX Aluminum Nov is expected to rise towards Rs 275 level as long as it stays above Rs 272.50 level. MCX Zinc Nov is likely to move north towards Rs 306 level as long as it stays above Rs 302.0 level
Energy Outlook
* Crude oil is likely to trade with positive bias and rise towards $61.70 buoyed by weakness in dollar and optimistic global market sentiments. Further, prices may move north on concerns over supply disruption amid fresh US sanctions on Russian crude and Ukrainian drone attacks on refineries. Russia Lukoil’s declared force majeure at Iraq’s giant West Qurna-2 oilfield. Furthermore, prices may rally on optimism that the US government shutdown may end this week after Senate approved a bill that would restore federal funding. The Republican-controlled House of Representatives is due to vote on the deal today. If approved, then it will be sent to US President to sign into law
* MCX Crude oil Nov is likely to rise towards Rs 5500 level as long as it stays above Rs 5250 level.
* MCX Natural gas Nov is expected to rise back towards Rs.410 level as long as it stays above Rs 390 level.
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