Commodity outlook: How bullion, oil, base metals and agri commodities may trade today
A quick run through of the projections on various commodities by SMC Global Securities.
Gold and silver were trading with a negative bias as traders were watchful ahead of US Fed rate decision. A strengthening rupee and positive news on US-China trade war front also affected the market sentiments.
Crude oil were trading marginally lower in Indian and international markets. Benchmark Brent Crude, after registering a record rise on Monday, cooled off on Tuesday. The Brent futures tanked 5 per cent on Tuesday as analysts said they were expecting Saudi output to recover sooner than expected after the weekend's drone attacks.
Below are the projections by SMC Global for the day ahead:
Bullion: SMC Global expects precious metals to trade sideways. It said investors maintained a cautious stance on Tuesday ahead of the conclusion of US Federal Reserve’s two-day meeting, where policymakers are expected to cut interest rates. The stance may continue on Wednesday as well.
Gold can face resistance near Rs 38,200 while taking support near Rs 37,700, while silver can face resistance near Rs 47,300 while taking support near Rs 46,600.
Energy: Crude oil may remain on weaker path as oil prices cooled on Wednesday as Saudi Arabia said the kingdom had fully restored its oil supply following attacks on its crude facilities. Crude oil may test Rs 4,180 while taking resistance near Rs 4,260.
Natural gas can witness profit booking at higher levels, moving towards Rs 188 while taking resistance near Rs 194.
Spices: The short covering in turmeric futures (Oct) is likely to face resistance near Rs 6,400. Jeera futures (Oct) may consolidate in the range of Rs 16,550-16,750. In Unjha, the benchmark market, exchange-quality jeera was sold at Rs 17,000 per 100 kg on Tuesday, down Rs 100 from the previous day. Dhaniya futures (Oct) are expected to surpass the resistance near Rs 6,200 and test Rs 6,280.
Oilseeds: Soybean futures (Oct) are likely to witness correction towards Rs 3,675. CPO futures (Sept) may also trade lower to test the Rs 556-554 range.
Other Commodities: Cotton futures (Oct) may witness a correction till Rs 19,400 as falling crude prices also make synthetic fibers cheap, making cotton less appealing. Chana futures (Oct) may take support near Rs 3,990 and trade higher towards Rs 4,025. Castor seed futures (Oct) may witness a steep fall towards Rs 5,760, if breaks the major support near Rs 5,796.