MCX Natural gas October is expected to face resistance near Rs310 level and dip towards Rs295 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $4080 and rise towards $4220 level on safe-haven demand. Further, China's central bank stepped up its gold purchases in September, extending its buying streak to a 23rd consecutive month. Markets are largely expecting US Federal Reserve to keep interest rates on hold later this month, but are still pricing in an 85% chance of a December increase. Additionally, prices may find support on continuous central bank buying and strong ETF inflows. Investors will continue to keep an eye on Fed official's comments and key economic data this week for further cues.
• MCX Gold December is expected to find support near Rs148,500 and rise towards Rs152,000 level.
• MCX Silver December is expected to move in a wide range between Rs220,000 and Rs228,000 level. Only a move above Rs228,000, it would rise towards Rs230,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher amid supply concerns. 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. Strike at Antofagasta’s Centinela copper mine continued for second day. Additionally, prices may find support on expectations of loosen monetary policy in October. Meanwhile, sharp upside will be limited on firm dollar
• MCX Copper October is expected to find support near Rs1406 level and rise towards Rs1420 level. Only a move above Rs1420 level, it will rise towards Rs1428 level.
• MCX Aluminum October is expected to face resistance near Rs340 level and dip towards Rs326. MCX Zinc October is likely to find support near Rs408 level and rise towards Rs418 level.
Energy Outlook
• NYMEX crude oil is expected to face resistance near $92 and dip towards $87 on easing supply concerns in the middle east. Further, prices may remain under pressure as President Donald Trump said US would not attack Iran ahead of next month’s midterm elections, citing “productive discussions” with Iran. Ship tracking data showed that crude oil exports reached over 18mb/d in the last week of September. Meanwhile, sharp downside may be limited as Iranian attacks raised the prospect of increased hostilities in the Middle East. Furthermore, Iran-backed Houthis struck two airports in Saudi Arabia as the group intensifies fighting.
• MCX Crude oil October is expected to face resistance near Rs9000 and dip towards Rs8600 level.
• MCX Natural gas October is expected to face resistance near Rs310 level and dip towards Rs295 level.
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