NEW DELHI: The bullion counter got some buzz on Monday even as the stock market turned choppy.
Gold rose Rs 37 to Rs 31,974 per 10 grams at 10:55 am while silver was at Rs 38,781 per kg, up by Rs 69.
We present you an outlook for commodities by SMC Global Securities.
Gold and silver: Gold is expected to take support near Rs 31,800 and face resistance near Rs 32,100 on MCX. Silver can take support near Rs 38,500 and hit a barrier near Rs 39,000, said SMC Global Securities in a report.
Base metals: Base metals prices may remain soft today. Copper can face resistance near Rs 449, but can take comfort near Rs 441. Zinc's equivalent figures are Rs 200 and Rs 196. Chinese iron ore futures climbed over 2 per cent to their highest in almost eight months on Monday, supported by firm demand for the raw material of steel manufacturing. Nickel and aluminium can be better off near Rs 850 and Rs 144 levels, respectively. The upside for nickel will be capped near 880 while aluminium has a resistance near Rs 146 levels. Lead can take support near Rs 143 and can face headwinds near Rs 147.
Energy: Oil prices turned stable today, supported by a bounce in Asian stocks. However, sentiment remained cautious as a plunge in financial markets last week triggered worries that global growth may be slowing. On the supply side, however, oil markets remain tense ahead of the US sanctions on Iran's crude exports, which are set to start next week. The move may tighten supply, especially to Asia which takes most of Iran's shipments. Crude oil can take support near Rs 4,900 and find resistance near Rs 5,000 on MCX. Natural gas may trade with a sideways bias as it can move in the range of Rs 231-240.
Spices: Bullishness is expected in turmeric futures (November) with support at Rs 6,600 levels and the prices may test Rs 6,750-6,800 levels. Reports that turmeric crop has been destroyed due to excessive rainfall in key producing areas of Kerala and Karnataka may push up the commodity prices. After consistent weakness in the last few days, big traders are buying turmeric in the spot market at the lower level.
Jeera futures are expected to trade sideways with an upside bias and may consolidate in the range of Rs 19,325-19,700 levels. With the hope of an increase in consumption during the coming festival month, the traders are not hesitant to stock jeera even at a higher price. Besides, the pace of arrival has become very weak at the mandis of Gujarat and Rajasthan, which may push trading activities for the available supply. On the demand side, the global production has been estimated lower this year. Therefore, the demand for Indian spice is continuously increasing in the international market.
Coriander futures may test Rs 6,000 level on the higher side. Spot coriander prices are gaining at major markets of Rajasthan and Madhya Pradesh due to adverse weather conditions in key producing belts. Rajasthan and Gujarat may see a decline of up to 30 per cent and 40-50 per cent, respectively, in sowing this year. On the global front, coriander crop in Ukraine, Bulgaria and Russia is estimated to be roughly half this year. Demand outlook looks favourable as there is a constant increase in the demand for coriander in the domestic market because of Diwali.
Oilseeds: Soybean futures are expected to trade higher and may test to Rs 3,330-3,350 level if prices hold above Rs 3,285. However, Profit booking at a higher level cannot be ruled out as the arrival of the new soybean crop is increasing and the harvest is now in full flow amid clear weather conditions.
Mustard futures are likely to trade with an upside bias. So, buy near Rs 4,170 for an upside of Rs 4,250 level, the brokerage said. The counter may get support due to better export prospects of rapeseed meal as China has dropped a ban on rapeseed meal imports from India.
A lower level buying can be seen near Rs 560 levels in CPO futures as prices fell sharply in the last few days on negative cues from Malaysian palm oil. Bullish sentiment in domestic oilseed sector may support the prices. However, weaker crude prices and falls in soyoil prices in CBOT may cap the upside.
Other Commodities: Cotton futures are expected to trade sideways to upside bias with support near Rs 22,550 levels and may touch the level of Rs 23,000. There is more room for upside in guar seed futures. Lower level buying may be seen in Chana futures near Rs 3,900-3,850 levels. The market is expecting demand to improve in finished/processed products in coming days season as the consumption of chana usually increases during October-November on festive season demand.