Commodity outlook: Crude oil gains; here's how others may fare

NEW DELHI: Barring natural gas, all metal and energy commodities traded with gains on Monday as a surprising US jobs data suggested the economy was coming back on track.

Gold and silver added 0.5 and 1.2 per cent, respectively, while crude oil crossed above RS 3,000 level, jumping 1.5 per cent. Base metals nickel, copper and zinc gained up to a per cent.


NCDEX Agridex, an agricultural futures Index which tracks the performance of the ten liquid commodities, added 0.51 per cent to 1,050 led by gains in all constituent commodities. Coriander and castor seed were the biggest gainers, adding about 2 per cent.

Here is how SMC Global expects commodities to fare today.

Bullion: Bullion counters may trade with bearish bias. Gold may test Rs 44,700 and facing resistance near Rs 45,500 while silver may test Rs 46,600 while facing resistance near Rs 47,500.

Base metals: Base metals may trade sideways with bullish bias. Copper can move towards Rs 437 while taking support near Rs 428. Zinc may move towards Rs 166 and take support near Rs 162. Lead can move towards Rs 143 while taking support near Rs 137. Nickel may trade with bullish bias where it may test Rs 995 and take support near Rs 960. Aluminum may move towards Rs 138 while taking support near Rs 134.

Energy: Crude oil may trade with bullish bias and may extend the bullish rally towards Rs 3,180 and Rs 2,840 provide support. Natural gas may trade in sideways territory where it may take support near Rs 132 and may face resistance near Rs 142.

Spices: Turmeric futures (June) is taking support near Rs 5,200 is expected to show an upside momentum towards Rs 5,520-5,560, on account of lower level buying and increased consumption for the purpose of medicinal use. Jeera futures (June) is expected to trade sideways in the range of Rs 13,500-13,800. Cardamom futures (June) may continue to take support near Rs 1,520, while the upside may get extended. Dhaniya futures (June) is likely to face resistance near Rs 5,750-5,800.

Oilseeds: Soybean futures (June) is looking bullish and may move higher towards Rs 4,000-4,040, taking support near Rs 3,890. The rally of mustard futures (June) may get extended to Rs 4,750 on the back of higher demand against lower supplies. Soy oil futures (June) may continue to trade with an upside bias taking support near Rs 798, while the upside may get extended to Rs 815. CPO futures (June) are consolidated in the range of Rs 645-660.

Other commodities: Cotton futures (June) will possibly remain stable and trade with a positive bias in the range of Rs 16,600-16,900. Chana futures (June) is expected to trade higher and test Rs 4,180-4,200, taking support near Rs 4,140. Despite strength witnessed in mentha oil futures (June) during past trading sessions, the upside may remain capped near Rs 1,120, as the fundamentals are not supportive enough to add further gains to the counter.