MCX Natural Gas Apr seen near Rs.260, may rebound to Rs.275 - ICICI Direct
Bullion Outlookc
* Spot gold is expected to move lower towards $4,550 per ounce amid stronger dollar and rising US treasury yields. Better than expected US job numbers and expectation of steady growth in the service PMI numbers would also support the dollar to stay firm. Further, escalating tension in the Middle east have increased market volatility and most likely to cap gains in the bullions. US President has issued fresh ultimatum to Iran and warned of strikes on its power plants and other infrastructure if the Strait of Hormuz is not opened.
* MCX Gold June is expected to move towards Rs.147,000 as long as it trades under Rs.150,500. Only a move below Rs.147,000, it would slip towards Rs.145,500.
* Spot silver is hovering near $72 per ounce, which is expected to slip further towards $70 mark. MCX Silver May is expected to face hurdle near Rs.240,000 and move lower towards Rs.225,000
Base Metal Outlook
* Copper prices are expected to hold support and move higher after US maintained its 50% tariff on key copper imports to protect domestic industries, whereas raw copper materials, such as ores, concentrates, cathodes, anodes, and copper scrap, are generally exempt from these tariffs. Further, better than expected manufacturing activity in China and US would limit its downside. Meanwhile, a strong dollar and uncertainties over Middle east conflict would likely to limit it upside.
* In the near term MCX Copper April is expected to hold support near Rs.1144 and move higher towards Rs.1160. Only a move above Rs.1160 it would rise towards Rs.1170.
* MCX Aluminum April is expected to find the support near Rs.348 and rise towards Rs.360 level amid persistent supply concerns form the Middle east.
* MCX Zinc April is likely to face resistance near Rs.326 level and move lower towards Rs.318 level.
Energy Outlook
• Crude oil prices remain highly volatile above $110 per barrel, with sustained upward pressure expected as Iran and the U.S. head toward a showdown over the Strait of Hormuz. Following Tehran's rejection of the US-imposed April 6 deadline, the strategically vital waterway remains blocked, halting approximately one-fifth of global oil flows. In addition to immediate supply threats, a recent OPEC+ meeting highlighted that war-related damage to energy infrastructure has caused structural supply damage, ensuring a prolonged market impact even if the conflict subsides
• NYMEX crude oil is expected to move higher towards $115, as long as it holds above $107. MCX Crude oil April is likely to move in a broader range of Rs.9900 and Rs.10,600. Only a move above Rs.10,600 it would rise towards Rs.11,000.
• MCX Natural gas April future is expected to find the floor near Rs.260 and rebound towards Rs.275.
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