Over all, MCX Gold June future is in consolidation and sustaining in a range. For the coming week 28200/27850 will act as a major support whereas 29000/29380 will act as a major resistance level in MCX Gold June future. For the next week in MCX Gold, trader can use buy on lower level strategy, if MCX Gold June future sustains above the levels of 28820 then it could test the levels 29000/29200.
Technically, MCX Silver May futures is in consolidation and sustaining around lower levels. For the coming week 45000/43900 will act as major resistance levels where as 41700/40700 will act as major support in MCX Silver May futures. For the next week in MCX Silver futures, traders can use buy on lower level strategy, if MCX Silver May futures sustains above 43400 then it could test the levels of 44100/ 44800.
Energy: Crude oil prices gave up its early gains right after the inventories data, prices moved higher till $105 over tensions in Ukraine and slower demand from China. U.S. crude oil inventories jumped last week, well beyond expectations, as stocks on the Gulf Coast hit a record high, moving up by 10Mln barrels compared to market expectation of 2.3mln barrels. We expect US Crude prices to move in a range 6560 to down 6000 for the week as higher crude oil inventories and rising tensions regarding Russia and Ukraine.
For the coming week 6190/6040 will act as major supports levels whereas 6550/6340 will act as major resistance in MCX Crude oil May futures. For the next week, trader can use buy on lower level strategy, if MCX Crude May future sustain above 6350 levels then it could test the levels 6450/6550.
Base Metal: Major base metals moved higher as Chinese GDP numbers released yesterday was marginally above to the market expectation. It is expected that Indonesian government might reduce the ban and check for Policy Moderation by end of the year. We expect Copper prices to move in a range 390 to higher 421 for the week over optimism of Chinese data. Other base metals can move higher especially nickel over its supply issue and positive data from China.
Trend of MCX Copper April future is in consolidation and also sustaining around higher levels. For the coming week, it could face major resistance of 420/410 whereas 400/390 could be a major support in MCX Copper. For the next week trader may follow buy on lower levels strategy, if MCX Copper future sustain above 410 levels then it could test the level of 415/420.
By Vivek Gupta, Director Research, CapitalVia Global Research Limited