Commodity outlook: Crude oil leaps; here’s how others may fare – Economic Times

NEW DELHI: Barring natural gas, all metal and energy counters traded with gain on Monday as India started the first phase of ‘unlocking’ the economy. They also got some boost from the fact that the US did not suspend its trade deal with China.

Gold pared its morning losses and added 0.35 per cent while silver jumped 1.63 per cent. Crude oil leaped over 4 per cent while nickel and copper gained up to 2 per cent.

NCDEX Agridex, an agricultural futures Index that comprises 10 commodity futures, gained 0.88 per cent to 1,015.20 level.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counters may trade with bullish bias. Gold may test 47,100 and take support near Rs 46,300 while silver may test Rs 50,980 while taking support near Rs 48,900.

Base metals: Base metals may trade with sideways to bullish bias. Copper can move towards Rs 420 while taking support near Rs 413. Zinc may move towards Rs 161 and face resistance near Rs 157. Lead can move towards Rs 135 while taking support near Rs 131. Nickel can recover towards Rs 955 while taking support near Rs 935. Aluminum can remain in the range of Rs 130-133.

Energy: Crude oil may trade in sideways territory where Rs 2,680 act as resistance and hold above that to extend the bullish rally towards Rs 2,820 and 2,370 considered as support. Natural gas may trade in sideways territory where it may take support near Rs 132 and may face resistance near Rs 141.

Spices: Turmeric futures (June) is expected to take support near Rs 5,200, while the upside may remain capped near Rs 5,300. Jeera futures (June) may witness consolidation in the range of Rs 13,500-13,600. Cardamom futures (June) may show an upsurge towards Rs 1,640, taking support near Rs 1,550.

Oilseeds: Soybean futures (June) is likely to witness consolidation for the sixth consecutive week in the range of Rs 3,700-3,800. In mustard futures (June) buy on dips would be suggested near Rs 4,450, as the U-shaped recovery may continue till Rs 4,550. Soy oil futures (June) is looking bullish and seen moving towards Rs 795-800, taking support near Rs 780, whereas CPO futures (June) may witness an extended rally to test Rs 645-650.

Other commodities: Cotton futures (June) is expected to consolidate in the range of Rs 15,700-15,900. Chana futures (June) will probably continue to take support near Rs 4,070, while the upside may get extended towards Rs 4,140, owing to prospects of higher procurement. Mentha oil futures (June) may witness rise on sell facing resistance near Rs 1,075, while the downside may get extended towards Rs 1,060-1,050.

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