MCX Crude oil May future is likely to move towards 6800 as long as prices trades under the 7050 mark - ICICI Direct
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Metal’s Outlook
Bullion Outlook
* Spot gold is expected consolidate in the broad range of $2360-2410 amid the Middle East uncertainties. Prices would find support amid increasing safe haven bids but higher US treasury yields is likely to restrict its upside. Further, lowering probability of rate cut in June and hawkish comments from the Fed officials would cap the upside in the bullions. For the day gold is likely to remain in the band of $2360-2410. Only a sustained move above $2410 would open the door towards $2435. On the contrary below $2360 it would slide towards $2330.
* MCX Gold June is likely to move in the band of 72200 and 73000. Only a move above 73000 it would rise towards 73500. Likewise, a move below 72200 it would move towards 71800.
* MCX Silver May is expected to consolidate in the band of 82500 and 84000. Only a move above 84000, it would open the doors towards 85000.
Base Metal Outlook
* Copper prices are expected to trade with a positive bias amid tighter supply and improved demand outlook. Low supply of copper ores and depleting stocks in the LME accredited warehouses is going to support the metal to trade higher. Further, increasing demand from the power and construction sectors would help the metal to scale new highs. While, China kept its loan prime rates unchanged as widely expected amid some recent improvement in the Chinese economy.
* MCX Copper is expected to move towards 856, as long as it holds above the immediate support at 840.
* Aluminum is expected to hold the support at 240 and move higher towards 248.
Energy Outlook
* NYMEX Crude oil is expected to trade in the band of $80 and $83 with a negative bias amid prospect of steady US interest rates. Meanwhile, tension in the Middle East and sanction on Iran would hurt the oil supplies from the major oil producing nations. Persistent risk premiums amid higher chances of supply disruptions in the Middle East should be enough to keep oil prices well-supported.
* MCX Crude oil May future is likely to move towards 6800 as long as prices trades under the 7050 mark. Only a move below 6800 would weaken it towards 6700.
* Natural gas is expected to face stiff resistance near 152 and move south amid higher inventory and forecast of less demand due to warm US spring temperature. MCX April futures is expected to face the hurdle near the 8 day EMA at 152 and turn weaker towards 140.
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