MCX Crude oil October is expected to face resistance near Rs9000 and dip towards Rs8600 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $4160 and rise towards $4250 level on safe-haven demand. Further, dip in crude oil prices may ease inflation concerns and reduce rate hike expectations in October. Markets are largely expecting US Federal Reserve to keep interest rates on hold later this month, but are still pricing in an 84% chance of a December increase. Additionally, prices may find support on continuous central bank buying and strong ETF inflows. Investors will focus on this week’s U.S Inflation data for further cues.
• MCX Gold December is expected to find support near Rs150,000 and rise towards Rs153,000 level.
• MCX Silver December is expected to move in a wide range between Rs222,000 and Rs228,000 level. Only a move above Rs228,000, it would rise towards Rs230,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher amid supply concerns and improving demand from China. Inventories remain low in China following a recent weeklong national holiday, while a gauge of import demand reached a four-year high in a sign of potential restocking by buyers in the world’s biggest consumer. Strike at Antofagasta’s Centinela copper mine continued for third day. Additionally, prices may find support on expectations of loosen monetary policy in October. Meanwhile, sharp upside will be limited on firm dollar
• MCX Copper October is expected to find support near Rs1414 level and rise towards Rs1436 level. Only a move above Rs1436 level, it will rise towards Rs1440 level.
• MCX Aluminum October is expected to face resistance near Rs340 level and dip towards Rs330. MCX Zinc October is likely to find support near Rs418 level and rise towards Rs425 level.
Energy Outlook
• NYMEX crude oil is expected to face resistance near $92 and dip towards $88 on expectations of more Russian supplies after US President Donald Trump said Ukraine and Russia has agreed to halt attacks on each other's energy facilities following a US diesel-supply deal with Moscow. Additionally, as per Bloomberg, U.S also issued a waiver for previously sanctioned Russian fuel. Meanwhile, sharp downside may be limited as tensions in Middle east continue to rise as Houthi militant group attacked Saudi Arabia’s main International Airport. Further, producers in Gulf of Mexico shut down approximately 72% of crude output as Hurricane Isaias pushed towards the US coast.
• MCX Crude oil October is expected to face resistance near Rs9000 and dip towards Rs8600 level.
• MCX Natural gas October is expected to find support near Rs304 level and rise towards Rs316 level.
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