MCX Crude oil Dec is likely to hold its ground above Rs 5200 and rebound towards Rs 5400 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot Gold is likely to trade higher amid weakness in the US dollar and fall in US treasury yields. After the rate cut, Fed’s move to inject liquidity in the financial system by $40 billion in a month would be supportive for the bullion prices. Further, concerns over US labor market and growing expectation of more rate cuts in the coming year will also boost the yellow metal to make new highs. Additionally, concern over Fed independence after White House National Economic Council Director Kevin Hassett emerged as the front-runner to serve as the next Fed chair has increased the prospects of lower rates.
* MCX Gold Feb is expected to rise towards Rs131,000 level as long as it stays above Rs 129,000 level. A move above Rs 131,000, it would rise towards Rs132,500
* MCX Silver March is expected to rise towards Rs195,000 level as long as it stays above Rs 189,000 level. A move above Rs 195,000, would open the doors towards Rs 198,500
Base Metal Outlook
* Copper prices are expected to hold its ground and move higher on growing prospects of more stimulus for the battered property sector in China. Prices would also get support on improved risk sentiments after the US Fed rate cut. Furthermore, concerns over a supply shortage and strong US demand along with depleting inventory levels in LME would help the metal to regain its strength.
* MCX Copper Dec is expected to hold support near Rs1075 and move higher towards Rs1100 level. Only break below Rs1075 level it may fall towards Rs1060-Rs1055 level.
* MCX Aluminum Dec is expected to rise towards Rs280 level as long as it stays above Rs 275 level. Only a move below Rs 275, it would slip towards Rs 270. MCX Zinc Dec is likely to move higher towards Rs 315 level as long as it stays above Rs 308 level.
Energy Outlook
• Crude oil is expected to hold the key support near $58 per barrel and move higher towards $60 amid rising geopolitical tension after the US seized an oil tanker off the coast of Venezuela. Escalating tension between US and Venezuela would hurt oil supplies and support prices to move higher. In addition to that, improved risk sentiments after US Fed rate cut would also improve demand prospects. Meanwhile, increasing US crude oil output and elevated supplies from OPEC+ along with forecast of sizeable surplus over 2026 would restrict its upside.
• MCX Crude oil Dec is likely to hold its ground above Rs 5200 and rebound towards Rs 5400 level. Only a move above Rs 5400 it will turn bullish.
• MCX Natural gas Dec is expected to hold the key support at Rs 400 level and rise towards Rs 434 level. Investor will eye on weekly inventory data for more clues
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
