MCX Natural gas Jan is expected to face hurdle near Rs.350 and consolidate in a broad range of Rs.320 to Rs.350 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot Gold is expected to trade higher and move towards $4400 per ounce on escalating geopolitical tension in Venezuela. Further, growing optimism over accommodative US monetary policy, persistent geopolitical risks and strong ETF inflows would strengthen bullish bets. Moreover, appointment of a dovish US Federal Reserve chair would also fuel the prospects of loose monetary policy from the Fed and support the bullions. For the day, spot gold is likely to hold support at $4340 and move higher towards $4400 per ounce. Only a move above $4400 per ounce it would rise towards $4450 per ounce.
* MCX Gold Feb is hovering in a tight range of Rs.133,300 and Rs.135,600 since last 5-days. A move outside of the range would bring clarity in price trend. A move above Rs.135,600, it would rise towards Rs.138,000.
* MCX Silver March hold strong support at Rs.205,000 level and move higher towards Rs.212,800. Above Rs.212,800 it would rise toward Rs.215,500.
Base Metal Outlook
* Copper prices are expected to hold its ground and move higher on tight supplies and strong import demand from China and US. Additionally, growing bets of fresh round of stimulus from China to counter slowdown in the property sector would also help the metal to hold firm. Moreover, increasing prospects of lose monetary policy would again strengthen the bullish bias in the red metal. Meanwhile, investors will eye on key economic data from China and home sales numbers from US to get further clarity.
* MCX Copper Dec is expected to hold support near Rs.1105 and move higher towards Rs.1125 level. A move above Rs.1125 level it would open the doors towards Rs.1130-Rs.1135 level.
* MCX Aluminum Dec is expected to rise towards Rs.285 level as long as it stays above Rs.280 level. Only a move below Rs.280, it would slip towards Rs.275. MCX Zinc is hovering below 20-day EMA at Rs.306.50. As long as it stays under Rs.306.50 it would remain under pressure and slide towards Rs.299 mark.
Energy Outlook
* NYMEX crude oil is hovering near $57 per barrel as rising geopolitical tension between US and Venezuela could hurt oil supplies from the region. The US has already seized two oil tankers this month. Further buildup of military action by US could trigger supply risk. Meanwhile, higher global supplies from OPEC+ and expectation of steady flows in the first quarter would limit its upside.
* On the data front, a strong put base at $55 would act as strong support. On the upside a strong call base at $60 would act as major hurdle. MCX Crude oil Jan is likely to consolidate in the band of Rs.5000 and Rs.5180 level. Only move above Rs.5180 it would turn bullish and open the doors towards Rs.5280.
* MCX Natural gas Jan is expected to face hurdle near Rs.350 and consolidate in a broad range of Rs.320 to Rs.350 level. Only move below Rs. 320, it would turn weaker towards Rs.305.
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