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

NEW DELHI: Most commodity futures were trading with cuts on Monday as another wave of Covid-19 infections in European cities that led to increased restrictions took a toll on sentiments.

Gold was down 0.20 per cent while silver slipped 0.27 per cent. Base metals were mixed with nickel and copper rising while the rest traded in the red. Crude oil was up 0.83 per cent and its peer natural gas was down 1.33 per cent.

NCDEX Agridex, an agricultural futures index that tracks the performance of the ten liquid commodities, was up 0.40 per cent or 4.55 points at 1,149.50 led by gains in castor seed and chana.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counters may post correction from higher levels where gold may test Rs 50,800 and face resistance near Rs 52,100 while silver may test Rs 66,980 and face resistance near Rs 68,400.

Base metals: Base metals may trade with a bullish bias where copper can move towards Rs 540 and take support near Rs 531. Zinc may move towards Rs 199 and take support near Rs 196. Lead can move towards Rs 151 while taking support near Rs 146. Nickel may trade with a bullish bias where it may take support near Rs 1,075 and resistance near Rs 1,120.Aluminum may move towards Rs 146 while taking support near Rs 143.

Energy: Crude oil may trade sideways with a bullish bias where it may take support near Rs 2,920 and resistance is seen near Rs 3,080. Natural gas may extend the bearish move towards support where resistance is seen near Rs 153 and support near Rs 145.

Spices: Turmeric futures (October) is posing a lower closing since the past three weeks, which depicts that the demand side is weak due to which in days to come we might have a downside of Rs 5,800, facing resistance near Rs 5,900. Jeera futures (October) is expected to nosedive towards Rs 13,700-13,600, facing resistance near Rs 13,950. Dhaniya futures (October) may witness correction towards Rs 6,400, facing resistance near Rs 6,670.

Oilseeds: Soybean futures (October) may trade with an upside bias in the range of Rs 3,975-4,060. Mustard futures (October) may trade sideways in the range of Rs 5,380-5,480. Soy oil (October) is expected to continue its bull-run and test Rs 955-960, while CPO (Sept) may continue to witness gains and move higher towards Rs 810-815.

Other commodities: Cotton futures (Oct) is in overbought zone and we may witness some correction towards Rs 17,800-17,700, if it doesn’t surpass the resistance near Rs 18,000. Guar seed futures (Oct) is expected to trade sideways to down in the range of Rs 4,000-4,050, while guar gum futures (Oct) may consolidate in the range of Rs 6,215-6,330.