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Commodity outlook: Crude oil jumps ahead of EPEC meet; base metals buzz on China factory data

Here is how SMC Global expects commodities to trade today.

ETMarkets.com|
Dec 02, 2019, 11.28 AM IST
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Crude oil was up 1.18 per cent to Rs 4,027 on MCX while natural gas edged 1.79 per cent higher to Rs 170.20.

Commodity Summary
MCX

GOLD
CRUDEOIL
Base metals gained in early trade on Monday on domestic bourses buoyed by China factory data that was better than expected. China is the biggest user of base metals in the world. Meanwhile, precious metals slipped.

Energy counters also gained ahead of the Opec meeting this week. Crude oil was up 1.18 per cent to Rs 4,027 on MCX while natural gas edged 1.79 per cent higher to Rs 170.20.

Agri commodities were mixed as castor seed, coriander, cotton seed, guar gum, guar seed and turmeric were trading in the red while chana, mustard seed and soybean were up on NCDEX.

Here is how SMC Global expects commodities to trade today:

Bullion: Bullion counter may trade on a weaker path. Gold can dip towards Rs 37,800 while facing resistance near Rs 38,100 and silver can test Rs 44,000 while facing resistance near Rs 44,600.

Base metals: Base metals may trade with a sideways-to-upward bias. Copper (Dec) may recover towards Rs 436 while taking support near Rs 432. Zinc (Dec) can bounce towards Rs 186 as it can take support near Rs 183. Lead may trade sideways as it can take support near Rs 152 and resistance at Rs 155. Nickel (Dec) may remain on the weaker side, testing Rs 1,000 while taking resistance near Rs 1,025. Aluminum (Dec) may recover towards Rs 135 while taking support near Rs 132.

Energy: Crude oil may witness some bounce back after a sharp fall in the last session. It can bounce towards Rs 4,080 while taking support near Rs 3,950. Natural gas can open on a weaker note testing Rs 166 while facing resistance near Rs 173.

Spices: Turmeric futures (Dec) are hovering near their yearly low of Rs 5,560 and this bearish trend is likely to get extended towards Rs 5,400. Jeera futures (Dec) are expected to consolidate and trade with an upside bias in the range of Rs 16,130-16,530. Dhaniya futures (Dec) may trade sideways to down in the range of Rs 6,585-6,765. Cardamom futures (Dec) are expected to trade with an upside bias in the range of Rs 2,765-2,900.

Oilseeds: Soybean futures (Dec) may continue to face resistance near 4,100-4,120 as the demand side is weak. Mustard futures (Dec) will possibly trade sideways to up in the range of Rs 4,290-4,335. CPO futures (Dec) would probably make a new life time high on the national bourse as it has the potential to test Rs 685-690. While, soy oil futures (Dec) is also expected to trade on a bullish note towards Rs 820-822, if it crosses the previous high of Rs 817.

Other commodities: Cotton futures (Dec) may witness short covering towards Rs 9,050-19,200. Chana futures (Dec) may witness correction towards Rs 4,360-4,410. Guar seed futures (Dec) may trade with a downside bias in the range of Rs 4,050-4,110, while guar gum futures (Dec) may break Rs 7,400 and plunge further towards Rs 7,300.

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