MCX Crude oil November is expected to find support near Rs9400 and rise towards Rs9900 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to expected to remain under pressure and dip towards $3950 as surge in crude oil prices has raised inflation concerns and reinforcing expectations that interest rates could remain elevated for longer period. As per CME FedWatch Tool, Markets are pricing in 75% chance that the Federal Reserve will raise interest rates in December. Meanwhile, strong ETF inflows and Central Bank buying may help prices to find some cushion. Investors will keep an eye on FOMC meeting this week for further cues.
• MCX Gold December is expected to face resistance near Rs144,000 and dip towards Rs140,000 level.
• MCX Silver December is expected to move in a wide range between Rs190,000 and Rs200,000 level. Only a move below Rs190,000, it would dip towards Rs185,000 level.
Base Metal Outlook
• Copper prices are expected to trade lower on firm dollar and expectations of tighter monetary policy by U.S Fed. Further, expectations grew that US may abandon proposed tariffs on refined copper imports. Markets increasingly anticipate that Trump administration could shelve tariff plans ahead of the midterm elections. Meanwhile, inventories in warehouses registered with Shanghai Futures Exchange tumbled by 26.5%. Additionally, In China, a shortage of copper concentrate is also forcing smelters to deepen production cuts ahead of negotiations on next year’s supply of the raw material.
• MCX Copper October is expected to face resistance near Rs1380 level and dip towards Rs1365 level. Only a move below Rs1365 level, it will dip towards Rs1360 level.
• MCX Aluminum October is expected to find support near Rs322 level and rise towards Rs334. MCX Zinc October is likely to find support near Rs418 level and rise towards Rs426 level.
Energy Outlook
• NYMEX crude oil is expected to find support near $98 as intensifying attacks in the Middle East stoke concerns of extended disruptions to supply. Further, Iran-allied Houthi militants attacked Saudi’s Red Sea port of Yanbu and Aramco’s Shaybah oil field, which together have the capacity to produce 1mb/d. The attacks have prompted US to evacuate some personnel and family members from American embassies in the country. At least 23 vessels have been hit over the past two weeks, according to ship tracking data from Kpler. Additionally, as per media reports, US and Israel have developed plans to renew strikes against Iran after the US midterm elections.
• MCX Crude oil November is expected to find support near Rs9400 and rise towards Rs9900 level.
• MCX Natural gas November is expected to face resistance near Rs300 level and dip towards Rs280 level.
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