MCX Copper November is expected to hold support near Rs.998 and move back towards Rs.1020 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot Gold is likely to rebound towards $4030 per ounce mark on expectation of loose monetary policy from the US Fed. The US Fed is most likely to lower the rates by 25 bps in today’s meeting. Furthermore, brewing hopes of rate cut from BOE could also provide some support to the bullions to regain their strength. Meanwhile, renewed tension between Israel and Hamas militants could bring back safe haven buying. On the other hand, optimism over US-China trade deal and outflow from gold backed ETFs would likely to restrict upside in prices.
* Spot gold is likely to hold support near $3900 and move higher towards $4030. A move above $4030 would open the doors towards $4100. MCX Gold December is expected to rise towards Rs.120,900 level, as long as it holds above Rs.117,600 level. Above Rs.120,900, next hurdle exist at Rs.123,000.
* MCX Silver Dec is expected to hold the key support at Rs.141,000 level and move higher towards Rs.147,000 level.
Base Metal Outlook
* Copper prices are expected to hold its gains and move higher amid market tightness. Fresh concerns of supply from Chile would likely to support prices. Forecast of lower-than-expected output in Collahausi mine would support price. Further, optimism over US-China trade deal and lower rates form the US federal reserve would also provide support to the base metal. Additionally, depleting inventory levels in LME and expectation of fresh round of stimulus from China would support the bullishness in the metal.
* MCX Copper November is expected to hold support near Rs.998 and move back towards Rs.1020 level.
* MCX Aluminum November is expected to rise towards Rs.272 level as long as it stays above Rs.267 level.
* MCX Zinc November looks to rise towards Rs.304 as long as it holds key support at Rs.295. Depleting inventory levels in LME would likely to support prices. Further, a new free trade agreement between ASEANChina would boost investor sentiments.
Energy Outlook
* NYMEX Crude oil expected to hold support near $60 per barrel and move back towards $62 over the optimism on US-China trade deal and lower rates from the US Federal reserve. Further, a surprise drop in US API crude oil inventories would also support oil prices to regain its strength. Meanwhile, growing prospects of higher OPEC+ supply in its upcoming meeting would restrict any major upside in prices. OPEC+ is expected to increase the oil output by 137,000 barrels per day in December.
* On the data front, a strong put base at $60 strike indicates NYMEX crude to hold strong support. On the upside $65 call strike has higher OI concentration which may act as key hurdle. MCX Crude oil November is likely to find support near Rs.5250 and rebound towards Rs.5400. Only below Rs.5250 it would turn weaker towards Rs.5150,
* MCX Natural gas November future is expected to slip towards Rs.335, as long as it stays under Rs.352 level.
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