MCX Natural gas Feb is expected to face the hurdle near Rs.295 and move lower towards Rs.275 - ICICI Direct
Bullion Outlook
* Gold is likely to extend its gains amid safe haven buying and softness in the dollar. Ongoing trade war concerns would increase the demand for safe assets and support the bullions to make new highs. Further, forecast of less than expected rise in US job numbers would weigh on the dollar and strengthen the bullions to trade higher. Spot gold is expected to hold the support of $2810 and move higher towards $2865. Closure of OI in OTM call strikes indicates short covering which might push prices further higher.
* MCX Gold April is expected to march towards Rs.84,500 level as long as it stays above Rs.83,200 level. Only a move below Rs.83,200 level prices may slip sharply towards Rs.82,600 level
* MCX Silver March is expected to holds its gains and move towards Rs.96,600. Above Rs.96,600 level it would open the doors towards Rs.98,000. On the downside immediate support exists near Rs.94,000 level.
Base Metal Outlook
* Copper prices are expected to hold its gains and trade with positive bias on growing optimism over trade deal with the US. Further, softness in the dollar and improved US manufacturing activity would provide support to the base metals. Further, depleting inventory levels in LME and return of China after long holiday break would bring back bullish momentum in prices. Additionally, increasing scope of fresh round of stimulus from China would strengthen the demand outlook.
* MCX Copper February has formed a bullish engulfing pattern on the daily chart indicates prices to trade higher. For the day, it is likely to rise towards Rs.845 level as long as it stays above Rs.833 level. Only below Rs.833 level copper prices may slip towards Rs.826 level
* MCX Aluminum Feb is expected to hold its ground near Rs.250 level and move towards Rs.256 level. MCX Zinc Feb is likely to rise towards Rs.270 level as long as it stays above Rs.265 level
Energy Outlook
* Crude oil is expected to find the floor near $71 and rebound towards $74 on growing concerns over sanction on Iran. Trump administration is likely to ramp up economic pressure on Iran which may hurt the global supply. Meanwhile, rise in API crude oil inventory levels and weaker than expected economic numbers from US would restrict any major upside in prices.
* On the data front, closure of OI in ATM and OTM call strikes indicates recovery in prices. Further, a strong put base near $70 would act as key support in the near term. MCX Crude oil Feb is likely to consolidate in the broad range of Rs.6180 and Rs. 6450 ahead of todays weekly inventory levels. Only close below 6180 it would turn weaker towards Rs. 6050.
* MCX Natural gas Feb is expected to face the hurdle near Rs.295 and move lower towards Rs.275. Mild US weather forecast would likely to keep a check on gas prices.
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