MCX Crude oil November is expected to find support near Rs9500 and rise towards Rs10,000 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to face resistance near $4100 as surge in crude oil prices has raised inflation concerns and may persuade Fed to tighten monetary policy. Further, firm dollar and elevated U.S treasury yields may add pressure on bullions. Meanwhile, strong ETF inflows and Central Bank buying may help prices to find cushion. As per CME FedWatch Tool, Markets are pricing less than 80% chance that the Federal Reserve will raise interest rates in December. Investors will keep an eye on today’s ECB monetary meeting and US Personal Consumption Expenditures data this week for further cues.
• MCX Gold December is expected to face resistance near Rs145,000 and dip towards Rs142,000 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 amid easing concerns over U.S. copper outflows and signs of softening seasonal demand may weigh on the metal. Further, prices may find pressure on firm dollar. Meanwhile, a shortage of copper concentrate in China is forcing smelters to deepen production cuts ahead of negotiations on next year’s supply of the raw material. Additionally, Peru’s Antamina, one of the country’s biggest copper mines, had suspended operations as a precaution after a worker died in an accident at its Yanacancha site. • MCX Copper November is expected to face resistance near Rs1410 level and dip towards Rs1395 level. Only a move below Rs1395 level, it will dip towards Rs1390 level.
• MCX Aluminum November is expected to face resistance near Rs335 level and dip towards Rs325. MCX Zinc November is likely to face resistance near Rs425 level and dip towards Rs410 level.
Energy Outlook
• NYMEX crude oil is expected to find support near $98 and rise towards $104 on prospect of resumption of US strikes on Iran, raising concerns of further supply disruptions. Further, prospect of Prime Minister Netanyahu edging past opposition leader in Isreal’s elections, who recently pledged to topple Iran’s regime. Risks remain elevated, with Saudi Arabian energy infrastructure coming under repeated attacks from the Yemen-based Houthis. Meanwhile, mediation efforts are underway behind the scenes, led by Qatar and supported by Pakistan, Saudi Arabia, Egypt and Turkey. As per media reports, OPEC+ oilproducing countries are expected to keep their December oil output targets steady on Sunday.
• MCX Crude oil November is expected to find support near Rs9500 and rise towards Rs10,000 level.
• MCX Natural gas November is expected to find support near Rs285 level and rise towards Rs298 level.
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