MCX Natural gas January future is expected to hold the support near 300 and rebound towards 330 - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot Gold is expected to move in the band of $2600-$2640 as most investors awaited more clues on Trump policies. Escalating geopolitical tension in Middle East and Eastern Europe would provide support to prices. Additionally, rising continuous jobless claims numbers could also help the yellow metal to stay higher. Whereas, strong dollar and growing prospects of lesser interest rate cut in US would limit its upside.
* MCX Gold February is expected to move in the band of 76,350 and 77,200.Only a move above 77,200 it would open the doors towards 77,600. On the other hand a move below 76,350 would weaken it towards 75,800.
* MCX Silver March is expected to move in the range of 86,500 and 89,000. It is expected to hold the multiple support near 86,500 and rebound towards 89,000. Only close below 86,500 it would turn bearish.
Base Metal Outlook
* Copper prices are expected to consolidate near its key supports amid growing bets of more stimulus measures from China to support the economy. Meanwhile, lesser than expected rise in Caixin manufacturing PMI data would likely to check its upside. Furthermore, strong dollar and contraction in manufacturing activities in Europe would limit its upside
* MCX Copper January is expected to find the floor near 788 and rebound towards 800. Only move below 788 it would turn weaker towards 784.
* Aluminum is expected to find the floor near 240 and move towards 244,. MCX Zinc is expected to face the hurdle near 20 day EMA at 283 and move lower towards 278. Below 278 it would open the doors towards 277.
Energy Outlook
* NYMEX Crude oil is likely to extend its rally towards $73 amid improved demand and depleting inventory levels in US. Supply concerns amid heightened tension between Russia and Ukraine would also provide support to oil prices. Further, forecast of drawdown in the weekly EIA inventory data could also help oil prices to stay elevated.
* On the data front, addition of OI in OTM put strikes indicates strong support near 6000. At same time closer of OI in ATM calls indicates price recovery. In NYMEX, next major hurdle is seen near $75 as higher OI concentration on the call side observed at 75 call strike. MCX Crude oil January is likely to hold the support near 6050 and move towards 6300. Above 6300 it would open the doors towards 6380.
* MCX Natural gas January future is expected to hold the support near 300 and rebound towards 330. Only a move below 300, it would bring more correction in price towards 290.
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