MCX Crude oil Aug is likely to hold the key support at Rs 5550 level and rebound towards Rs 5800 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is likely to face stiff resistance near $3450 and move back towards $3380 on trade deal optimism. US President has announced a new trade agreement with Japan that includes a 15% tariff on Japanese exports to the US, which is less than the 25% tariff he had threatened earlier. Meanwhile, EU is already exploring broader set of possible counter measures against U.S as prospect of trade agreement is fading. Additionally, investors will also eye on key economic numbers from US to get more clarity on interest rate trajectory.
• On the data front, a strong call base at 3450 would act as key hurdle for prices. On the downside 3250 put strike holds higher OI. MCX Gold Aug is expected to face strong resistance near Rs 101,000 level and move back towards Rs 99,500 level.
• MCX Silver Sep is expected to move towards Rs 116,500 level as long as it trades above Rs 114,000 level. Only below Rs 114,000, it would turn weaker.
Base Metal Outlook
• Copper prices are expected to trade with a positive bias on optimistic global market sentiments. Trade deal between US and Japan would boost risk sentiments. Further, hopes of stimulus from China to stabilize growth in key sectors such as machinery, autos, and electrical equipment could boost demand for industrial metals. Meanwhile, Investors will remain cautious ahead of 1 st August deadline when many trading partners will face higher trade levies and a list of the copper products to which the levy would apply
• MCX Copper July is expected to rise towards Rs 905 level as long as it stays above ?889 level. A break above Rs 905 level prices may rally further towards Rs 910 level
• MCX Aluminum July is expected to rise further towards Rs 258 level as long as it stays above Rs 252 level. MCX Zinc July is likely to move north towards Rs 271 level as long as it stays above Rs 266 level.
Energy Outlook
• Crude oil is likely to trade with positive bias and reverse its losses on growing prospects of trade deal optimism. Recent announcement of trade deal with Japan ahead of 1 st -August deadline has eased some concerns that prolonged disputes could weigh on energy demand. Additionally, fall in US API crude oil inventories last week would also support prices to hold its ground above $64 mark. Meanwhile, investors will eye on nuclear talks in between Iran and EU nations on Friday, any positive outcome will restrict upside in prices.
• MCX Crude oil Aug is likely to hold the key support at Rs 5550 level and rebound towards Rs 5800 level. A strong put base at 65 strike would act as key support. On the upside $68 and $70 would likely to act as immediate hurdle.
• Natural gas is likely to find the floor near Rs 275 and rebound towards Rs 292.
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