Commodity outlook: Bullion, energy counters dip on profit-booking; here’s how others may trade today

Bullion counters slipped lower on Tuesday as traders continued to book profits. Metals and crude oil also followed suit ahead of the formalisation of the US-China trade deal.

Crude oil was down 0.44 per cent to Rs 4,114 while nickel slid 0.49 per cent to Rs 1,024. Copper was down 0.16 per cent to Rs 450.

Agri commodities were mixed with castor seed, jeera and soya bean trading in the red, while chana, coriander and kapas trading in the green.

Here is how SMC Global thinks commodities may trade today:

Bullion: Bullion counters may witness further profit booking. Gold can dip lower towards Rs 39,100 while facing resistance near Rs 39,600 while silver can test Rs 45,800 while facing resistance near Rs 46,300.

Base metals: Base metals may trade with a mixed bias. Copper may dip lower towards Rs 446 while facing resistance near Rs 452. Zinc can recover towards Rs 184 while taking support near Rs 180. Lead may trade with a sideways-to-upward bias testing Rs 153 by taking support near Rs 150. Nickel may dip towards Rs 1,010 while facing resistance near Rs 1,040. Aluminium may recover towards Rs 143 while taking support near Rs 140.

Energy: Crude oil may remain weaker. It can further dip lower towards Rs 4,080 while facing resistance near Rs 4,150. Natural gas can dip lower Rs 152 while facing resistance near Rs 157.

Spices: Turmeric futures (Mar) are expected to witness a major downside of Rs 6,200-6,150, if it trades below Rs 6,300. Jeera futures (Mar) can crash towards Rs 15,300-15,100. Dhaniya futures (Apr) will possibly continue to witness selling pressure in the range of Rs 7,080-7,100 and correct towards Rs 6,800-6,750.

Oilseeds: Soybean futures (Feb) are likely to trade with a downside bias and test Rs 4,200-4,160. Mustard futures (Feb) may witness a good amount of correction and move towards Rs 4,380-4,350. CPO futures (Jan) may continue to consolidate in the range of Rs 825-835. While, soy oil futures (Feb) may trade sideways to downwards in the range of Rs 909-922 tracking
bearish trend of soy oil on CBOT.

Other commodities: Cotton futures (Jan) are looking bullish and have the potential to test the Rs 20,150-20,200 levels on the higher side. In days to come, we may see chana futures (Mar) going down further to Rs 4,300-4,280 as the selling pressure is about to increase in the spot markets. Guar gum futures (Feb) are expected to trade firm in the range of Rs 7,300-7,500.