Commodity Outlook: How will bullion, metals & spices trade today

NEW DELHI: How will commodities fare in the domestic futures market today? Here is a quick check on the projections from various commodities by brokerage SMC Global Securities.

Bullion: The bullion counter may remain firm as gold prices gained on Tuesday, hovering near more than a six-year high, amidconcerns over growing protests in Hong Kong, a slump in Argentina’s market even as the ongoing Sino-US trade war dented investor risk appetite, said brokerage SMC Global Securities.

Gold (Oct) can test the Rs 38,600 level taking support near the Rs 38,100 level while silver can move towards Rs 44,300 taking support near Rs 43,800.

Base metals: Base metals may trade sideways with a weak bias. Copper may take support near Rs 442 and has resistance near Rs 447. Zinc can test Rs 183 and faces resistance near Rs 188. Lead may recover towards Rs 156, taking support near Rs 152. Nickel may test Rs 1,150 taking support near Rs 1,100 while Aluminium may test Rs 143 while taking support near Rs 139.

Energy: Crude oil may trade with a negative bias as prices slipped on Tuesday, offsetting narrow gains in the previous session even assluggish demand forecasts countered expectations that major producers would prop up oil prices by limiting crude oil output.

In domestic market, crude price may move towards Rs 3,850 as it faces resistance near Rs 3,950. Natural gas can dip towards Rs 148 as it has resistance near Rs 152.

Spices: Turmeric futures (Sept) will probably show an upside momentum towards Rs 7,100 if they trade and sustain above Rs 7,000 level. Jeera futures (Sept) are expected to respect the Rs 17,100 level and gain to test the Rs 17,500-17,550 range. Dhaniya futures (Sept) are likely to trade with an upside bias and recover towards Rs 6,280-6,380, taking support near Rs 6,080 level. Cardamom futures (Aug) are expected to trade in the broader Rs 3,390-3,840 range with an upside bias.

Oilseeds: Soybean futures (Sept) are likely to recover towards Rs 3,700, maintaining support near the Rs 3,620 level. Soy oil futures (Sept) as well as CPO futures (Aug) are looking bullish and can test Rs 760 and Rs 555 levels, respectively. Mustard futures (Sept) may underperform in the oilseeds pack and trade sideways in the Rs 3,900-3,930 range.

Other commodities:
Cotton futures (Aug) are likely to trade sideways in the Rs 20,100-20,400 range with the upside capped. Guar seed futures (Sept) are expected to stay above the strong support zone near Rs 4,335, while guar gum may hold on to the Rs 8,600 level.They are likely to trade with a strong upside bias in the days to come and head towards Rs 4,500 and Rs 8,810-8,985 levels, respectively. Castor seed futures (Sept) may trade with a bullish bias and test Rs 5,750 level, taking support near Rs 5,625 level.