MCX Crude oil November is expected to find support near Rs9500 and rise towards Rs10,100 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to remain under pressure and dip towards $3950 as elevated crude oil prices has raised inflation concerns and may persuade Fed to tighten monetary policy. Additionally, ECB kept interest rates unchanged, but warned that inflation risks were on the rise from surging energy costs. Meanwhile, strong ETF inflows and Central Bank buying may help prices find some 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 Bank of Japan’s monetary meeting and other U.S economic data for further cues.
• MCX Gold December is expected to face resistance near Rs144,500 and dip towards Rs141,000 level.
• MCX Silver December is expected to move in a wide range between Rs185,000 and Rs195,000 level. Only a move below Rs185,000, it would dip towards Rs180,000 level.
Base Metal Outlook
• Copper prices are expected to trade lower amid concerns over higher U.S inventory. Further, Inventories in warehouses linked to the US Comex exchange have surged 60% so far this year to 800,321 short tons or 726,039 metric tons. Additionally, prices may find pressure on firm dollar. Meanwhile, Chinese copper buyers rushing to secure supply in a tightening market have sent a key gauge of import demand shooting to a record high. Additionally, Oyu Tolgoi copper mine has temporarily suspended underground operations as Fifteen workers were injured in an accident at the large copper mine in southern Mongolia.
• MCX Copper November is expected to face resistance near Rs1400 level and dip towards Rs1385 level. Only a move below Rs1385 level, it will dip towards Rs1380 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 Rs415 level and dip towards Rs405 level.
Energy Outlook
• NYMEX crude oil is expected to find support near $100 and rise towards $106 on prospect of resumption of US strikes on Iran, raising concerns of further supply disruptions. Further, oil flows from Russia has reduced as Ukraine continued to attack on Russian oil refineries. Risks remain elevated, with Saudi Arabian energy infrastructure coming under repeated attacks from the Yemen-based Houthis. Meanwhile, ship-tracking data from Bloomberg showed Saudi Arabia’s oil loadings at its export facilities in the Persian Gulf rose to nine supertankers. That amounts to approximately 18mbbl of oil. Iran’s Foreign Minister Abbas Araghchi said his country would continue to give diplomacy a chance.
• MCX Crude oil November is expected to find support near Rs9500 and rise towards Rs10,100 level.
• MCX Natural gas November is expected to face resistance near Rs285 level and dip towards Rs272 level.
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