NEW DELHI: Gold and silver were trading lower in early trade on Wednesday on account of subdued demand for precious metals from jewellers, industries and retailers. Oil prices gained for a second day on Wednesday after industry group data showed the US crude inventories fell more than expected last week, easing worries about oversupply that had dragged on markets in recent sessions.
Here’s a lowdown on outlook of different commodities, as brought out by different brokerages.
Soybean futures are expected to trade sideways on expectation of good acreage for soybean this season due to forecast of normal rains. However, steady improvement in demand from the oil mills as government increases the incentives for soy meal exports may keep prices supported, according to Angel Commodities. The brokerage house also feels that mustard futures may trade sideways to lower on further corrections but improved demand for crushing and lower arrivals may support prices from lower levels. Moreover, improved meal exports will support mustard prices.
Refined soy oil to trade sideways due to higher stocks and steady physical demand. Moreover, weaker rupee and increase in import duty on refine and crude soy oil may keep the prices higher. Crude palm oil (CPO) futures may trade sideways amid higher domestic stocks and steady domestic demand from the stockists.
Angel Commodities sees Chana futures to trade higher due to improved physical demand and diminishing stocks with the stockists. However, it added that there is an expectation of some corrections at higher levels. Cotton futures are expected to trade sideways to positive on improved demand and increase in MSP by government. However, weak international prices and expectation of higher acreage of cotton due to good prices may keep prices sideways.
Angel Commodities expects Jeera futures to trade higher on expectation of good physical and exports demands from China and Bangladesh. However, correction from the higher levels may keep the prices sideways. Turmeric futures expected to trade higher on expectation of increase in physical demand during sowing season. However, reports of improved sowing turmeric growing areas of Tamil Nadu, Karnataka and Maharashtra may keep prices sideways.
Geojit Financial Services believes buying momentum in Cardamom Aug MCX seems to be exhausted and if unable to stay above Rs 1176, expect a lower correction to Rs 1140 levels. Moreover, daily RSI (14) is hovering towards overbought zone.
Gold has been under pressure as market participants continue to bet there is further room for the dollar to advance as strong GDP data due Friday could strengthen the Federal Reserve’s case to continue rate hikes, according to Motilal Oswal.
SMC Global Securities believes that gold can take support near Rs 29,750 and can face resistance near Rs 30,000 in MCX. Meanwhile, silver can take support near Rs 38,200 and resistance near Rs 38,600.
Base metals counter can trade with firm path on supply concerns. Copper can take support near Rs 423 while its upside will be capped near Rs 433, according to SMC Global Securities. Zinc can face resistance near Rs 183 and support near Rs 178 while lead can take support near Rs 145 and can face resistance near Rs 150. Nickel can take support near Rs 920 while its upside will be capped near Rs 950. Aluminium can face resistance around Rs 145 while it can take support around Rs 141 in MCX.
The commodity can take support near Rs 4,650 and may face resistance near Rs 4740 on MCX, SMC said.