MCX Crude oil October is expected to find support near Rs8400 and rise towards Rs8900 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $4080 and rise towards $4180 level on safe haven demand. Sentiment was further boosted as central banks added 39 tonnes of gold to their reserves in August. As per CME FedWatch Tool, traders now see a 20% probability of a Fed rate hike in October, down from 64% a week ago. Meanwhile, prices may face pressure on strong dollar and rising U.S treasury yields. Investors will keep an eye on today’s key FOMC Meeting Minutes for further cues.
• MCX Gold December is expected to find support near Rs148,500 and rise towards Rs151,500 level.
• MCX Silver December is expected to move in a wide range between Rs224,000 and Rs232,000 level. Only a move above Rs232,000, it would rise towards Rs234,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher amid supply concerns. Further, a strike at Antofagasta’s Centinela copper mine could begin on October 13 if no agreement is reached in contract talks. Additionally, prices may find support on expectations of loosen monetary policy in October. Meanwhile, sharp upside will be limited on strong dollar and weak demand from China. Traders are awaiting the return of top metals consumer China from a week-long national holiday.
• MCX Copper October is expected to find support near Rs1404 level and rise towards Rs1416 level. Only a move above Rs1416 level, it will rise towards Rs1420 level.
• MCX Aluminum October is expected to find support near Rs335 level and rise towards Rs344. MCX Zinc October is likely to find support near Rs410 level and rise towards Rs421 level.
Energy Outlook
• NYMEX crude oil is expected to find support near $87 and rise towards $92 on escalating tensions in the middle east. Further, UK’s Maritime Trade Operations reported that pace of attacks by Iran has increased in recent days, with nine vessels targeted over the last several days. Meanwhile, signs of more crude supplies leaving from the Middle East has eased global supply concerns and may limit upside in oil prices. Kuwait said it is pumping about 75% of the level seen before the Iran war, and Iraq is seeking to hire additional vessels to send its oil cargoes through the Strait of Hormuz. Today’s, focus will remain on weekly EIA crude oil inventory data.
• MCX Crude oil October is expected to find support near Rs8400 and rise towards Rs8900 level.
• MCX Natural gas October is expected to find support near Rs294 level and rise towards Rs312 level.
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
