Base metals jumped as China’s central bank said it would inject 1.2 trillion yuan ($174 billion) worth of liquidity into the markets via reverse repo operations on Monday. China is the biggest consumer of these metals.
Nickel gained 0.28 per cent to Rs 946.70, while copper was up 0.41 per cent to Rs 428.10. Zinc mini edged up 0.49 per cent to 174.85.
Gold and silver, however, saw profit booking. Gold futures fell 0.40 per cent to Rs 41,039 per 10 gram and silver futures shed 1.26 per cent to Rs 46525 per kg.
Here is how SMC Global expects commodities to trade today:
Bullion: Bullion counters can witness some profit booking at higher levels. Gold (Apr) can dip lower towards Rs 40,800 while facing resistance near Rs 41,300 while silver (Mar) can test Rs 46,100 while facing resistance near Rs 46,900.
Base metals: Base metals may trade with positive bias. Copper may recover and can test 430 while taking support near Rs 425. Zinc can recover towards Rs 176 while taking support near Rs 173. Lead may remain sideways as it can take support near Rs 146 while facing resistance near Rs 149. Nickel may move towards Rs 955 while taking support near Rs 940. Aluminium may also move towards Rs 137 while facing resistance near Rs 140.
Energy: Crude oil may open on a weaker path. It can move towards Rs 3,650 while facing resistance near Rs 3,740. Natural gas can move upside towards Rs 136 while taking support near Rs 130.
Spices: Turmeric futures (Mar) may witness correction for the second consecutive week towards Rs 5,825, facing resistance near Rs 6,040. Last month, jeera futures have descended by more than 15 per cent on the back of estimates of a bigger crop this year. The short covering may face resistance near Rs 14,270. Dhaniya futures (Apr) may continue to face resistance near Rs 6,600-6,650 and the upside may remain capped.
Oilseeds: The one and only factor which has dented the sentiments of the oilseeds complex globally is the outbreak of coronavirus in China, due to which the demand has slowed down from the highest consuming nation of edible oils and soybean. In the domestic market, soybean futures (Feb) may trade sideways to down in the range of Rs 4,050-4,110 taking negative cues from the international market. CPO futures (Feb) may continue to slide down to Rs 740-735, while soy oil futures (Feb) may test Rs 835 on the lower side.
Other commodities: Cotton futures (Feb) are likely to trade lower towards Rs 19,300. Chana futures (Mar) are expected to trade with a downside bias and test Rs 3,960-3,940. Mentha oil futures (Feb) may breach its previously low near Rs 1,190 and witness further correction towards Rs 1,180-1,170.
Source: Economic Times
