Commodity outlook: Nickel falls; here's how others may fare

NEW DELHI: Crude oil and bullion counters advanced while base metals dropped lower amid fresh Covid concerns in multiple countries that threatened businesses.

Nickel was down 0.91 per cent to Rs 934 while copper slipped 0.32 per cent to Rs 405. Meanwhile, natural gas gained 0.51 per cent to Rs 138.60 and crude oil 0.76 per cent to Rs 18,59.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counters can trade on a mixed path. Gold can take support near Rs 45,600 and resistance near Rs 46,000 while silver may move towards Rs 43,800 while taking support near Rs 42,800.

Base metals: Base metals may witness positive movement. Copper can move towards Rs 410 while taking support near Rs 400. Zinc can move towards Rs 158 by taking support near Rs 154. Lead can move towards Rs 135 while taking support near Rs 130. Nickel can recover towards Rs 955 while taking support near Rs 920. Aluminum can remain in the range of Rs 130-133.

Energy: Crude oil may witness some positive movement. It can improve towards Rs 1,900 while taking support near Rs 1,800. Natural gas can remain under pressure as it can test Rs 133 by facing resistance near Rs 145.

Spices: In days to come, the turmeric June contract may trade with a bearish bias in the range of Rs 5,250-5,200. Cardamom futures (June) may witness recovery till Rs 1,800-1,830. The short covering in jeera futures (June) may get limited till Rs 13,750-13,800 as the fundamentals are not much supportive in the present scenario. Dhaniya futures (June) may consolidate sideways in the range of Rs 5,715-5,815.

Oilseeds: The upside momentum in soybean futures (June) doesn’t look sustainable as it may face resistance near Rs 3,850. Mustard futures (June) is looking bullish for Rs 4,220-4,250, hence a dip towards Rs 4,130 can be considered as a buying opportunity. Soy oil futures (June) may trade higher towards Rs 765, while CPO futures (May) is expected to test Rs 610-615 on the higher side.

Other commodities: Cotton futures (May) may witness a consolidation in the range of Rs 15,520-15,820. Chana futures (June) may trade sideways in the range of Rs 4,095-4,150. Castor seed futures is trading nearly just to its yearly low of Rs 3,608 and going ahead this bearish trend in the June contract will possibly get extended to Rs 3,630-3,600.