Commodity outlook: MCX Nickel may keep chin up, bullion undecided

NEW DELHI: Precious metals gold and silver are likely to rule steady with negative bias today.

Base metals are expected to move sideways. Let’s see how key commodities are likely to behave.

Bullion: The bullion counter may trade both ways with a weak bias on fears of an interest rate hike by the US Fed in its policy meeting next week. Gold (August) can take support near Rs 30,700 and face resistance near Rs 31,100 on MCX. Meanwhile, silver for July can draw support near Rs 39,300 and face resistance near Rs 39,800, says SMC Global Securities.

Base metals
MCX Copper traded rangebound on Friday. On the daily chart, the price has given rising channel breakdown and moved below it, which indicates bearish sentiments on the counter, said Choice Broking. A momentum indicator RSI (14) has moved downwards with a negative crossover. Therefore, we expect bearish movement in copper for the day, the brokerage firm added.

Nickel: MCX Nickel is expected to trade positive for the session as long as it holds above Rs 1,010. Immediate support is at Rs 1,015 whereas resistance is seen at Rs 1,035. Buying is advised, stated brokerage Motilal Oswal Securities.

Agri commodities
Turmeric futures for June are likely to trade mixed and consolidate in the range of Rs 7,000-7,165 levels.

Jeera futures for June are trading in the Rs 15,900-16,400 level. On the spot market, jeera prices are steadily supported by limited supply.

June soybean futures are expected to trade with a bearish bias in Rs 3,540-3,590. Refined soy oil futures are likely to see correction towards Rs 755, taking negative cues from the bearish trend of soybean prices.

Chana futures for June delivery are again back in the negative zone and are expected to trade mixed between Rs 3,500 and Rs 3,570.

Crude Oil: Crude oil can take support near Rs 4,400, with resistance near Rs 4,500 on MCX. Crude oil remained under pressure as the market kept its focus on the discussion among Opec members about whether they should increase production later this year.