Wednesday, January 27

Commodity outlook: Silver gains; here’s how others may fare

NEW DELHI: Commodities block was a mixed bag on Friday with bullion counters trading with gains while energy and base metals in the red amid escalating tensions between US and China.Gold was flat while silver gained 0.31 per cent. Base metals dropped up to a per cent. Meanwhile, crude oil dipped 0.44 per cent and its peer natural gas was down 1.35 per cent.

NCDEX Agridex, an agricultural futures index that tracks the performance of the ten liquid commodities, was down 0.41 per cent or 4.50 points at 1,088.55 led by lossed in cotton seed oilcake and soya bean.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counters may extend the rally where gold may test Rs 56,400 and take support near Rs 55,200 while silver may test Rs 77,300 and take support near Rs 75,200.

Base metals: Base metals may trade sideways with a bullish bias. Copper can move towards Rs 519 and take support near Rs 510. Lead can move towards Rs 157 while taking support near Rs 152. Nickel trade bullish bias where it may take support near Rs 1,070 and resistance near Rs 1,120. Aluminum may move towards Rs 148 while taking support near Rs 144.

Energy: Crude oil may trade sideways with bullish bias where it may take support near Rs 3,080 and resistance is seen near Rs 3,260. Natural gas may post correction where resistance is seen near Rs 166 taking support near Rs 154.

Spices: Turmeric futures (Aug) is likely to trade sideways in the range of Rs 5,800-5,900. Jeera futures (Aug) is expected to witness a sideways to down movement in the range of Rs 13,850-14,050. Dhaniya futures (Aug) is expected to hold on the support near Rs 6,400, while the upside may remain capped near Rs 6550. Cardamom futures (Aug) is likely to consolidate in the range of Rs 1,500-1,550.

Oilseeds: Soybean futures (Aug) may trade higher in the range of Rs 3,880-3,940. Soy oil (Aug) will probably trade sideways to up in the range of Rs 875-885, and CPO (Aug) in the range of Rs 745-760.

Other commodities: Cotton futures (Aug) is expected to trade higher sideways to up in the range of Rs 16,350-16,550. Chana futures (Aug) would possibly hover sideways in the range of Rs 4,150-4,200. Mentha oil futures (Aug) is likely to face resistance near Rs 980 and the upside may remain capped.

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