MCX Crude oil March is likely to move in a broader range of Rs 7400 and Rs 8200 - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot gold is likely to extend its gains and move higher towards $5,300 as long as it holds above $5,100 per ounce in the near term. Escalating geopolitical tension in the Middle east would fuel safe haven buying in the precious metal. Further, conflicting messages from US officials has caused uncertainty, which may bring volatility in gold prices. Meanwhile, focus will remain on today’s key US inflation numbers. Any sign of rise in the number would dimmish hopes of early rate cut bets by the Fed which could restrict major upside in the bullions.
* MCX Gold April is expected to hold support near Rs 161,000 and move higher towards Rs 165,000.
* International Spot silver is likely to move in the band of $86 and $90. Only a move above $90 it would turn bullish towards $92. MCX Silver May is expected to move towards Rs 281,000 as long as it holds above Rs271,000. Only a move above Rs 281,000, it would rise towards Rs 284,00
Base Metal Outlook
* Copper prices are expected to hold its ground and move higher amid demand recovery in China. Increase in spot premiums since last week indicates demand improvement. The premium has improved to approximately $53 per metric ton following a 60% jump in late February as Chinese markets returned from the Lunar New Year holiday. On the other hand, increasing stocks in the LME inventory could limit its upside. Meanwhile, investors will eye on key economic numbers from US and China to get more clarity on price direction. In the near term MCX Copper March is projected to move toward Rs 1,214, provided it holds above Rs1,188
* MCX Aluminum March is expected to hold above Rs 332 and rise towards Rs 342 level. A move above Rs 342 it would rise towards Rs 348. Prices are expected to remain higher due to supply disruption from the Middle east region.
* MCX Zinc March is likely to face hurdle near Rs 328 level and move lower towards Rs 321 level.
Energy Outlook
* NYMEX crude oil is likely to remain volatile amid uncertainty over oil supplies via Strait of Hormuz and conflict in the Middle east. Meanwhile, the IEA's proposal to release more than 182 million barrels to counter supply squeeze due to the Middle east war would restrict any major upside in price. We expect extreme volatility to persist amid ongoing Middle East unrest; on the downside, $76 serves as key support, while the $90–$92 zone acts as an immediate hurdle. Today, investors will also eye on weekly EIA inventory numbers to get more clues on price trend.
* MCX Crude oil March is likely to move in a broader range of Rs 7400 and Rs 8200. A move above Rs 8200 it would rise towards Rs 8600
* MCX Natural gas March future is expected to rise towards Rs 290 as long as it trades above Rs 270
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
