Commodity outlook: Base metals may remain volatile, Natural gas likely to trade with weak bias

NEW DELHI: Gold is likely to trade in a relatively lower range on Friday while crude oil may witness some profit booking at higher levels amid high output from Russia.

Here's a look at the likely trends of key commodities for today's session:

Crude Oil: MCX crude oil is likely to find intraday support at Rs 4,980 - Rs 4,940 zone and trend remains bullish as long as the same is held. Motilal Oswal advises buying on dips.


Natural Gas: MCX Natural Gas is likely to find resistance at Rs 204.50- Rs 206.30 zone and a corrective move towards Rs 199-Rs 197.50 area looks likely.

Bullion counter: Gold (Aug) can take support near Rs 30,400 and can face resistance near Rs 30,700 in MCX. Meanwhile, Silver (Sep) can take support near Rs 39,500 and can face resistance near Rs 40,000.

Agri commodities
Cotton futures (July) are likely to take support near Rs 21,880 levels and the downside may remain capped owing to fact that this season the cultivation area has witnessed a fall, says SMC Global Securities.

Soybean futures (July) may trade with an upside bias towards Rs 3,550-Rs 3,570 taking support near Rs 3,470 levels.

Turmeric futures (July) may trade with an upside bias towards Rs 7,500 levels taking support near Rs 7,330 levels.

Mustard seed futures (July) will possibly face resistance near Rs 4,010 levels and the short covering may remain capped.

Base Metals
Copper can take support near Rs 450 and face resistance near Rs 458. Industry body ICSG estimated world copper mine production rose 7.1 per cent or by 330,000 tonnes during the first quarter of this year, SMC says in its report.

Zinc can take support near Rs 199 and resistance near Rs 204 while lead can take support near Rs 164 and can face resistance near Rs 169.

Aluminium may witness some short covering as it can take support near Rs 147 and resistance near Rs 152 in MCX.