MCX Copper October is expected to find support near Rs1390 level and rise towards Rs1415 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $4100 and rise towards $4220 level on safe haven demand. Further, softer than expected U.S economic data sharply lowered the expectations of a Fed rate hike in October. As per CME FedWatch Tool, traders now see a 22% probability of a Fed rate hike in October, down from 64% a week ago. Further, decline in crude oil prices may support the bullions. Meanwhile, prices may face pressure on strong dollar and rising U.S treasury yields. Investors will keep an eye on today’s key ISM Services PMI data for further cues.
• MCX Gold December is expected to find support near Rs148,500 and rise towards Rs153,000 level.
• MCX Silver December is expected to move in a wide range between Rs223,000 and Rs233,000 level. Only a move above Rs233,000, it would rise towards Rs235,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher amid supply concerns. Further, production in Chile, world's largest copper producer, fell in August to its weakest level since February 2011. Stocks in warehouses monitored by Shanghai Futures Exchange have slumped by 79% over the past four months to 38,744 tons, their lowest since January 2024. Meanwhile, sharp upside will be limited on strong dollar and weak demand from China. Earnings from China’s industrial sector remain weak, which could further weigh on demand for industrial metals.
• MCX Copper October is expected to find support near Rs1390 level and rise towards Rs1415 level. Only a move above Rs1415 level, it will rise towards Rs1425 level.
• MCX Aluminum October is expected to face resistance near Rs340 level and dip towards Rs330. MCX Zinc October is likely to find support near Rs404 level and rise towards Rs415 level.
Energy Outlook
• NYMEX crude oil is expected to face resistance near $94 and dip towards $87 on easing supply concerns in the middle east. Further, G7 countries announced it will release up to 100 million barrels of crude oil and diesel supplies from its strategic reserves. Additionally, Iraq's state-owned Oil Tanker Company transported 2 million barrels of Iraqi crude oil through the Strait of Hormuz. Meanwhile, prices may find cushion as Saudi Arabia plans an offensive attack against Houthi militants in Yemen and may launch an assault on several fronts in the coming weeks along the coast in Yemen to secure safe passage for their ships transiting the Red Sea.
• MCX Crude oil October is expected to face resistance near Rs9000 and dip towards Rs8500 level.
• MCX Natural gas October is expected to find support near Rs284 level and rise towards Rs305 level.
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