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 firm dollar and elevated U.S treasury yields. Further, surge in crude oil prices has raised inflation concerns and may prompt Fed to tighten monetary policy. Markets largely see Fed keeping interest rates on hold later this month, but assign 87.7% probability of a hike by 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 Rs150,000 and dip towards Rs147,000 level.
• MCX Silver December is expected to move in a wide range between Rs216,000 and Rs223,000 level. Only a move below Rs216,000, it would dip towards Rs214,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher amid supply concerns and improving demand from China. Further, weaker South American mine output, Democratic Republic of Congo's export ban and El Nino-related disruptions have constrained concentrate availability, keeping treatment and refining charges under pressure. Chile’s Centinela copper mine and two striking unions returned to the negotiating table under a voluntary mediation process aimed at resolving a week-long work stoppage.
• MCX Copper October is expected to find support near Rs1410 level and rise towards Rs1424 level. Only a move above Rs1424 level, it will rise towards Rs1430 level.
• MCX Aluminum October is expected to face resistance near Rs330 level and dip towards Rs320. MCX Zinc October is likely to face resistance near Rs420 level and dip towards Rs410 level.
Energy Outlook
• NYMEX crude oil is expected to find support near $92 and rise towards $98 as investors assess supply risk from fighting between Yemen's Iran-allied Houthis and Saudi Arabia against the prospect of increased diesel from Russia. Further, Houthis attacked an administrative building belonging to state-owned oil firm Saudi Aramco in the city of Dhahran, causing a limited fire. Additionally, Iranian attacks on tankers transiting the Strait of Hormuz showed no signs of easing. Ship-tracking data suggest crude exports slowed in early October and weakened further in the second week of the month, while tanker shortages and elevated freight rates are increasingly disrupting regional trade flows.
• MCX Crude oil October is expected to find support near Rs8700 and rise towards Rs9200 level.
• MCX Natural gas October is expected to find support near Rs305 level and rise towards Rs320 level.
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