Select base metals, including copper, brass and tin, gained traction further at the non-ferrous metals market here today, buoyed by stockists’ heavy buying.
A look at how different commodities will behave, as brought out by brokerages.
Bullion: According to Angel Broking, gold prices may trade lower on Friday as optimism in trade talks between the US and the EU will hurt safe haven demand.
SMC Global Securities said, “Gold can take support near Rs 29,700 per 10 grams and can face resistance near Rs 29,950 per 10 grams on MCX. Meanwhile, silver can take support near Rs 38,000 and find resistance near Rs 38,600 per kg.”
Spices: According to SMC, turmeric futures (August) are likely to face resistance near Rs 7,300 level. Jeera futures (August) may take comfort near Rs 19,450 as export demand is rising consistently due to low availability in other key producing countries. Jeera prices quoted steady at the key Unjha market on Thursday. Cardamom futures (August) are expected to trade above Rs 1,130 level.
Oilseeds: Soybean futures (October) are expected to move sideways in the range of Rs 3,340-3,395. The key Indore soybean market was shut on Thursday due to transporters’ strike, which entered its 7th day today. The prices may get support as CBOT soybean futures climbed nearly 2 per cent on Thursday, rising for the third consecutive session.
Prices have been underpinned by expectations of higher exports to Europe after talks between Washington and the European Union. But higher soybean acreage in the ongoing Kharif season may weigh on the counter.
Mustard futures (August) will possibly trade in the range of Rs 4,130-4,210. Mustard seed prices weakened further at major spot markets of Rajasthan. However, good crushers’ demand and firmness in other edible oils, mainly soybean, may support the prices.
CPO futures (August) are expected to get stuck in the range of Rs 600-607 on bullishness in the international market. CPO futures in BMD rose on better export demand. Benchmark October futures on the Bursa Malaysia Derivatives Exchange closed up MYR 38 at MYR2,201/ton. Malaysia’s palm oil exports on July 1-25 are estimated higher by 5.6% on month at 910,774 metric tonnes.
Other commodities: Chana futures (August) may face headwinds near Rs 4,200 levels, according to SMC. Cotton futures (October) are likely to trade in Rs 23,400-23,750 levels. Cotton traded higher in major markets of South and Central India on Thursday tracking strong US market, but activity was dull due to the transporters’ stir.
Base metals: The base metals counter can trade with a positive slant as Shanghai base metal prices rose on Friday, buoyed by a 20-percent year-on-year jump in profits for China’s industrial companies in June. But profit growth in the non-ferrous sector fell.
SMC in a report said copper can take support near Rs 426 while its upside will be capped near Rs 434. Zinc can face support near Rs 177 and resistance near Rs 181 while lead’s respective figures are Rs 145 and Rs 150.
Nickel can take support near Rs 935 while its upside will be capped near Rs 950. Aluminium may have a tough time near Rs 143 while it can take support near Rs 139 on MCX.
Crude oil: Crude can draw support from Rs 4,770 and may face a hurdle near Rs 4,840 on MCX, according to SMC.