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Commodity outlook: Energy counters tank; here’s how others may fare

Here is how SMC Global expects commodities to trade today.

ETMarkets.com|
Last Updated: Feb 27, 2020, 12.03 PM IST
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Crude oil fell 2.54 per cent to Rs 3,456 per barrel and natural gas tanked 3.58 per cent to Rs 129.40 per mmBtu.

Commodity Summary
MCX

GOLD
CRUDEOIL
Energy and base metals slipped in morning trade on Thursday as new cases of coronavirus increased rapidly outside China.

Crude oil fell 2.54 per cent to Rs 3,456 per barrel and natural gas tanked 3.58 per cent to Rs 129.40 per mmBtu. Copper and nickel were also down 0.6 per cent each to Rs 422.50 and Rs 908.90, respectively.

Here is how SMC Global expects commodities to trade today:

Bullion: Bullion counter can witness some bounce back at lower levels. Gold can recover towards Rs 42,900 while taking support near Rs 42,400, while silver can recover towards Rs 47,400 while taking support near Rs 46,600.

Base metals: Base metals may trade with a weak bias. Copper may move lower towards Rs 420 while facing resistance near Rs 426. Zinc can move towards Rs 153 while facing resistance near Rs 157. Lead may move lower taking a dip near Rs 140 while facing resistance near Rs 143. Nickel may move towards Rs 905 while facing resistance near Rs 920. Aluminium may trade dip lower as it can test Rs 132 while taking resistance near Rs 137.

Energy: Crude oil may extend its weakness moving towards Rs 3,400 while facing resistance near Rs 3,520. Natural gas can slip lower towards Rs 127 while facing resistance near Rs 134.

Spices: Turmeric futures (March) are expected to face resistance near Rs 6,040 and witness a downside towards Rs 5,825-5,750. Jeera futures (March) will continue to face resistance near Rs 13,700 and witness a plunge towards Rs 13,500-13,400. Coriander futures (Apr) may continue to witness selling from Rs 5,900 and trade lower towards Rs 5,750-5,700.

Oilseeds: Soybean futures (March) are expected to fall further towards Rs 3,730-3,700. Mustard futures (April) are expected to break below Rs 4,000 and go down to test Rs 3,970-3,950. Soy oil futures (March) are expected to trade lower towards Rs 775-770. There is more room for CPO futures (Mar) to down for Rs 660-655.

Other commodities: The trend of Cotton futures (Mar) has turned bearish taking cues from the international market and this factor may drag down the counter to Rs 18,800-18,700. Chana futures (March) may trade with a downside bias and witness a consolidation in the range of Rs 3,920-3,990 owing to prospects of higher output this season. Guar seed (March) is projected to plunge further towards Rs 3,550-3,500, while guar gum (March) can see Rs 5,900-5,800 on the lower side.

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