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    Commodity outlook: How to deal with gold, silver, crude oil, aluminium in today’s trade

    Synopsis

    ​​The short covering in jeera is expected to face resistance near Rs 18,300-18,400 levels.

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    Guar seed futures (Jan) will probably remain trapped sideways in the range of 4250-4350, while the short covering in guar gum futures (Jan) may face resistance near 8700 levels.
    Crude oil price declined over 1 per cent on Thursday amid worries about oversupply and the outlook for the global economy. Gold and silver were also trading in red in the morning trade.

    We bring you projections on various commodities from SMC Global Securities. Take a look:

    Spices: The inflows of new crop in Nizamabad from December-end which can keep turmeric futures (Apr) trapped in the range of Rs 6675-6835 levels. Meanwhile, at the Erode Turmeric Merchants Association finger turmeric was sold at Rs 5,339–8,008 a quintal; and root variety at Rs 4,980–7,074.

    The short covering in jeera futures (Jan) is expected to face resistance near Rs 18,300-18,400 levels. The sentiments are bearish due to lack of support from buyers, as they are awaiting from fresh crop to arrive in markets and keeping a watch over the sowing progress.

    Coriander futures (Jan) will probably take support near Rs 6,150 levels, mainly due to forecast of lower output.

    Factors ranging from scanty rains and farmers shifting to other remunerative crops like wheat and chana affected to output scenario.

    Oilseeds: Soybean futures (Jan) is expected to consolidate in the range of Rs 3340-3390 levels.

    Mustard futures (Jan) is expected to trade sideways in the range of Rs 3985-40005 levels.

    CPO futures (Dec) is trade higher and test Rs 525 levels taking positive cues from the international market.

    Other commodities: Cotton futures (Dec) is looking bearish and is expected to trade in the range of Rs 21,300-21,700 levels.

    Guar seed futures (Jan) will probably remain trapped sideways in the range of 4250-4350, while the short covering in guar gum futures (Jan) may face resistance near 8700 levels.

    Chana futures (Jan) is expected to trade with a bearish bias and test Rs 4410 levels.

    Gold and silver: Gold on MCX may trade with a downside bias in the range of 30,900-31,250 taking negative cues from the international market. Silver on MCX will possibly witness correction towards 37,200-37,100 levels.

    Base metals: On MCX, Copper may take support near Rs 416 and face resistance near Rs 427.

    In supply-side news, judges earlier this week ordered the reopening of Sterlite Copper’s Tuticorin copper smelter in the southern Indian state of Tamil Nadu after its closure in May, which could bring as much as 400,000 tonnes of copper back to the market.

    COMEX open interest has slumped to two-year lows. So too has that on the Shanghai Futures Exchange (ShFE), where China’s speculators play the metal markets.

    Money managers held a marginal net short position of 913 contracts on COMEX’s high-grade copper contract at the end of last week, according to the latest Commitments of Traders Report (COTR).

    Aluminium can take support near Rs 134 levels and resistance near Rs 137 levels.

    Energy: Crude oil prices can trade with a downside bias in the range of Rs 3200-3450 taking negative cues from the international market.

    On NYMEX, Oil prices fell on Thursday to erase most of their gains from the day before, resuming declines seen earlier in the week amid worries about oversupply and the outlook for the global economy.





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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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