MCX Crude oil May future is expected to hold support near 6440 and move towards the initial hurdle at 6650 - ICICI Direct
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Bullion Outlook
* Spot gold is expected to move in the band of $2300 and $2340 as most investors likely to wait for more data points to get clarity on Fed path. Hawkish comments from the Fed members would restrict the upside in the bullions. Whereas mixed set of economic numbers from US would increase the bets that the Federal Reserve will reduce the rates in September. Forecast of rise in jobless claims number would support the bullions. Moreover, people will also eye on the BOE policy.
* MCX Gold June is expected to hold the 20 day EMA at 70800 and move towards the initial hurdle at 71600. A move above 71600 would open the doors towards 72000.
* MCX Silver July is expected to move in the band of 82,000 and 83,400. Only a move outside of the range would bring further clarity in its trend.
Base Metal Outlook
* Copper prices are expected to find support and regain its strength amid tight supplies. Growing bets of improvement in China’s housing sector in the second half and strong demand growth from the renewable energy would support the metal to trade higher. Moreover, forecast of better trade balance numbers and increase in loan growth would provide the necessary support to the metal to trim yesterday’s losses.
* For the day MCX Copper May is likely to hold the support of 20 day SMA at 848 and move higher towards 862. Only a move below 848, it would correct towards the immediate support at 842.
* Aluminum May future is expected to find the floor near 230 and rebound towards 237. Only close below 230 it would turn weaker towards 228.
Energy Outlook
* NYMEX Crude oil is expected hold the support near $77 and move towards $81 on hopes of government buying. The US administration has raised the price range to $79.99 from $79 to refill the country’s depleted strategic oil reserve. Further, increasing refinery activity ahead of the summer driving season in US would also boost the demand prospects. Meanwhile, strong dollar and renewed hopes of ceasefire in Gaza would restrict its upside.
* MCX Crude oil May future is expected to hold support near 6440 and move towards the initial hurdle at 6650. A move above 6650, would open the doors towards 6800.
* Natural Gas prices may take a pause in its rally ahead of today’s weekly inventory report. MCX Natural gas May futures is expected dip towards 175, as long as it trades below the 190. Only a move above 190 it would turn bullish.
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