MCX Crude oil October is expected to find support near Rs8700 and rise towards Rs9200 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to face resistance near $4200 and dip towards $4120 level on strong dollar and rising U.S treasury yields. Further, surge in crude oil prices has raised inflation concerns and may prompt Fed to tighten monetary policy. Markets are pricing in roughly an 80% probability that the Fed will leave interest rates unchanged this month, while assigning nearly an 88% chance of a rate hike in December. Meanwhile, prices may find cushion on safe haven demand. Investors would look out for remarks from Fed Chair Kevin Warsh, along with key inflation data, later this week to gauge future monetary policy.
• MCX Gold December is expected to face resistance near Rs152,000 and dip towards Rs148,500 level.
• MCX Silver December is expected to move in a wide range between Rs218,000 and Rs226,000 level. Only a move below Rs218,000, it would dip towards Rs215,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher amid supply concerns and improving demand from China. Further, two workers in Chile, died after a snow avalanche struck the El Teniente copper mine. The operation had already been halted due to bad weather. Weather-related disruptions are adding to operational setbacks, accidents and declining ore quality that have weighed on copper production in Chile. Strike at Antofagasta’s Centinela copper mine continued for fourth day. Meanwhile, sharp upside will be limited on firm dollar
• MCX Copper October is expected to find support near Rs1415 level and rise towards Rs1430 level. Only a move above Rs1430 level, it will rise towards Rs1435 level.
• MCX Aluminum October is expected to face resistance near Rs346 level and dip towards Rs326. MCX Zinc October is likely to find support near Rs416 level and rise towards Rs424 level.
Energy Outlook
• NYMEX crude oil is expected to find support near $90 and rise towards $95 amid supply concerns and escalating tensions in the middle east. Further, Saudi Arabia has seen an increase in attacks from Houthi rebels in Yemen, while Iran has ramped up attacks on shipping in the Strait of Hormuz. Meanwhile, sharp upside may be limited on prospects of Russia releasing diesel supplies into the global market after the US Treasury issued a waiver for previously sanctioned Russian fuel. OPEC has revised down its oil demand growth forecast for this year to 400,000 barrels per day from 1.4 million bpd at the start of the year, in line with developments throughout the year
• MCX Crude oil October is expected to find support near Rs8700 and rise towards Rs9200 level.
• MCX Natural gas October is expected to face resistance near Rs304 level and dip towards Rs296 level.
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