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    Commodity Outlook: How will bullion, crude & spices trade

    Synopsis

    The bullion counter is expected to move sideways with a positive bias.

    ETMarkets.com

    Commodity Summary

    MCX
    NEW DELHI: Stocks slipped on Dalal Street on Friday, dragged by declines in metals and IT services stocks. The market seems to be caught up with a broader selloff in global markets on Thursday as fears of a recession in the US stoked worries about global growth.

    Also, there is no resolution in sight in the trade standoff between China and the US.

    But the commodities market is putting up a different show. Here is a quick look at the projections for various commodities by brokerage SMC Global Securities.

    Bullion: The bullion counter is expected to move sideways with a positive bias. Gold prices gained on Friday, as a steep fall in US bond yields continued even as conflicting signals on the Sino-US trade war added to economic uncertainty. Gold (Oct) can take support near Rs 38,000 and face resistance near Rs 38,400, while silver (Sep) can take support near Rs 43,600 and will have resistance near Rs 44,300.

    Base metals: Base metals may trade positive. Copper may trade sideways, as it can take support near Rs 446 while facing resistance near Rs 452. Zinc can recover to Rs 186 while taking support near Rs 183. Lead may recover towards Rs 156 while taking support near Rs 152. Nickel may move upwards to Rs 1,160, taking support near Rs 1,130. Aluminium may test Rs 142 level while taking support near Rs 139.

    Energy: Crude oil may trade with an upside bias, as prices rose in global markets on Friday after two days of decline, buoyed by data showing a rise in US retail sales that helped ease concerns about a recession in the world's biggest economy. Crude oil may move towards Rs 3,980 while taking support near Rs 3,900. Natural gas can recover towards Rs 160, taking support near Rs 156.

    Spices: Turmeric futures (Sept) are expected to trade sideways in the Rs 6,850-7,050 range. Jeera futures (Sept) are expected to trade with a downside bias in the Rs 16,800-17,100 range. Dhaniya futures (Sept) are likely to see a consolidation in the Rs 5,800-6,000 range. Cardamom futures (Sept) are expected to trade in a broad range between Rs 3,520 and Rs 3,750.

    Oilseeds: Soybean futures (Sept) are likely to recover towards Rs 3,700, maintaining support near Rs 3,620. Soy oil futures (Sept), as well as CPO futures (Aug), are expected to take support near Rs 755 and Rs 550, respectively. Mustard futures (Sept) may face resistance near the Rs 3,980 levels.

    Other commodities: Cotton futures (Aug) are likely to trade sideways in the Rs 20,580-20,700 range with an upside bias. Guar seed futures (Sept) are expected to stay above the strong support zone near Rs 4,315, while guar gum may hold on to the Rs 8,450 level. Castor seed futures (Sept) may trade with an upside bias in the Rs 5,630-5,700 range.



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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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