Gold – MCX Gold trades in a narrow range amid rangebound movement in international market. COMEX gold trades in a narrow range near $1130/oz amid lack of fresh cues. Choppiness in US dollar and equity marker has kept gold in a range and this trend could continue in the near term. Focus today will be on US economic data which will affect US dollar as well as general risk sentiment. Gold may remain choppy but sell on rise is suggested. Support for MCX Gold February contract is seen at Rs.26800 while Resistance is seen at Rs.27100.

Silver– MCX Silver trades marginally lower amid rangebound movement in international market and firmer rupee. COMEX Silver trades mixed near $15.8/oz amid rangebound movement in gold and weakness in most industrial metals. Lack of fresh cues will keep commodities choppy but bias may be on downside on profit taking ahead of holidays.

Support for MCX Silver March contract is seen at Rs.38600 while Resistance is seen at Rs.39300.
Copper– MCX Copper trades in a narrow range tracking range bound movement in LME. LME Copper trades choppy amid mixed cues. On weaker note weighing on prices is choppiness in equity markets along with recent sharp build up in stocks at LME. Copper stocks at LME fell by 1275 tonnes today following 132,000 tonnes gains from 12 to 19th December. The downside may however be capped hopes of robust demand from top consumers China and US. We expect the metal to trade in a narrow range amid mixed cues however overall bias remains weak. Support for MCX Copper February contract is seen at Rs.372 while Resistance is seen at Rs.379.

Aluminum– MCX Aluminum too trades little changed tracking range bound movement in international exchange. We expect the metal to continue to trade in a narrow range amid mixed cues however bias remains weak. Prices may come under pressure tracking rising stocks at LME along with record high production in China that may add onto supply glut.
Aluminium stocks at LME rose by 10450 tonnes today. The downside may however be capped amid demand optimism. Support for MCX Aluminum December contract is seen at Rs.116.8 while Resistance is seen at Rs.118.

Zinc– MCX Zinc trades lower tracking weakness in LME. Putting pressure on the prices is weakness across metals complex amid mixed trend in equity markets along with year-end profit booking and rise in Chinese production. The downside may however be capped amid hopes of robust demand along with lingering supply worries and decline in stocks at LME. Zinc stocks at LME fell by 200 tonnes today. The metal may note mixed movement today amid mixed cues however bias for the day remains weak. Support for MCX Zinc December contract is seen at Rs.174 while Resistance is seen at Rs.178.

Nickel– MCX Nickel trades more than 1% lower tracking weakness in International exchange. Putting pressure on the prices is weakness across base metals complex along with high inventory overhang and signs of surplus in physical market. Nickel stocks at LME fell by 144 tonnes today. The downside may however be capped amid supply uncertainty from Philippines. For the day we expect the metal to trade with weaker however don’t suggest creating fresh shorts at these levels. Support for MCX Nickel December contract is seen at Rs.712 while Resistance is seen at Rs.728.

Lead-MCX Lead trades lower tracking weakness in international exchange. We expect the metal to trade with a weaker bias today amid weakness across base metals complex tracking profit booking and mixed trend in equity markets. Also putting pressure on the prices is jump in stocks at LME warehouses and ample supplies in physical market. Lead stocks at LME rose by 50 tonnes following 11700 tonnes build up yesterday. The downside may however be capped amid hopes of pickup in demand for replacement batteries in winter. Support for MCX Lead December contract is seen at Rs.141 while Resistance is seen at Rs.144.5.

Crude Oil– MCX Crude trades in a narrow range in line with international prices. NYMEX crude trades in a narrow range in a narrow range above $52 per barrel amid lack of fresh cues. Hopes of production cut by OPEC members is countered by expectations of higher output from US and Libya. Choppiness in equity market and US dollar and mixed economic data from major economies has also affected crude price. Crude may remain in a range but sell on rise will be ideal strategy.Further cues will come from US economic data and weekly US rig activity report. Support for MCX Crude January contract is seen at Rs.3545 while Resistance is seen at Rs.3635.

Natural gas-MCX Natural gas trades higher tracking cues from international exchange. NYMEX natural gas trades higher supported by sharp decline in US gas stocks. However, weighing on price is forecast of moderate weather which will keep a check on heating demand. Mixed factors may keep gas in a narrow range but sell on rise is suggested. Profit taking ahead of long weekend and contract expiration next week may weigh on price. Support for MCX Natural gas December contract is seen at Rs.237 while Resistance is seen at Rs.246.

MCX MARKET OUTLOOK 23-12-2016 5:00 PM

Leave a Reply

Your email address will not be published. Required fields are marked *