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Crude oil ready to scale Rs 3,800 – Economic Times

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NEW DELHI: Crude oil market tightened in the domestic futures market on Tuesday, tracking firmness in the global trend.

Oil prices ticked up slightly after a fall on Monday as traders weighed support from Opec-led supply restraints and a slowdown in the global economy, Reuters reported.

Meanwhile, gold prices slipped in domestic futures trade after participants cut down positions amid a lacklustre global trend due to dollar’s rise against its peers.

MCX Gold was trading at Rs 32,966 per 10 grams, down by Rs 80, while silver was trading at Rs 39,793 a kg, down by Rs 29 around 11:05 am. Crude oil was at Rs 3,744 per barrel, up Rs 25 at that time.

Where are commodities headed today? Here are the projections by brokerage SMC Global Securities.

Bullion: The bullion counter may move sideways with a negative bias. Gold can face resistance near Rs 33,200 while it has support near Rs 32,950. Silver can go lower and test Rs 39,700, facing resistance near Rs 40,100.

Base metals: Base metal prices may trade lower on the US-China trade concerns. Copper may hit Rs 435 while facing resistance near Rs 442 on MCX. Zinc can move lower towards Rs 186. Lead can move sideways in the range of Rs 144-146. Nickel can go further lower and touch the Rs 870 mark. Aluminium prices may find some support near Rs 132.

Energy: Crude oil can hit Rs 3,800, taking support near Rs 3,700. Natural gas can witness lower level buying and hit Rs 192 on MCX.

Spices: Turmeric futures (April) may see more downside towards Rs 6,300-6,250 levels owing to fall in demand. Jeera futures (March) have gone down to an extremely oversold zone and may see some short covering. It may take support near Rs 15,300 level. The short covering seen in coriander futures (April) may face resistance near Rs 6,320.

Oilseeds: Soybean futures (March) may witness more correction towards Rs 3,665 level. Mustard futures (April) are expected to trade with an upside bias taking support near Rs 3,900 level. Soy oil futures (March) are expected to fall towards Rs 756. CPO futures (February) may witness correction towards Rs 559.

Other commodities: Cotton futures (February) are likely to witness a bounceback amid lower level buying taking support near Rs 20,400. Guar seed futures (March) may face a hurdle near Rs 4,300 while guar gum futures (March) are expected to remain below Rs 8,500-8,550 levels. Chana futures (March) are expected to take support near Rs 4,210.