Gold and silver prices skyrocket after US Federal Reserve cuts interest rate by 50bps. Trend volatile.
Review
On Tuesday, gold and silver prices settled on a positive note in international markets. Gold April futures settled at $1,644.40 per troy ounce, up by 3.11%, while silver May futures settled at $17.19 per troy ounce, up by 2.74%. Due to weakness in the rupee, domestic markets also settled on a positive note. Gold settled at Rs43,474 per 10 grams with a gain of 3.62%, and silver settled at Rs46,378 per kilogram with a gain of 3.07%. Gold and silver prices extended gains on Tuesday after the US Federal Reserve cut key interest rates by 50 basis points. The Federal Reserve lowered its benchmark interest rate—the Fed funds rate—by 0.5% to counter the negative economic aspects of the coronavirus outbreak. The rate now stands at 1.0 to 1.25%. After interest rate cuts by the US Federal Reserve, the 10 year bond yield in the US slipped below 1%, and aggressive buying was seen in both precious metals. We expect both precious metals to remain volatile. Gold has support at $1,632–1,622 and resistance is at $1,654–1,666. Silver has support at $17.00–16.70, while resistance is at $17.44–17.70.
Today, gold has support at Rs42,392–41,311, while resistance is at Rs44,036–44,599. Silver has support at Rs45,352–44,326, while resistance is at Rs47,127–47,876. Traders are suggested to trade in a range with a strict stop-loss.
ENERGY
WTI Crude oil extends gain on the hope of deep production cut by OPEC and Russia. Trend volatile.
Review
On Tuesday, crude oil settled on a mixed note in international markets as WTI crude settled at $47.18 per barrel, while Brent settled at $51.89 per barrel. Domestic markets also settled on a positive note at Rs3,457 per barrel with a gain of 0.76%. Crude oil prices gained in the early trading session on Tuesday on the hope of a deeper production cut by the OPEC and Russia in the forthcoming meet this week. But after the US Federal Reserve cut interest rates by 50 basis points, profit booking was seen at higher levels. Fear of the coronavirus is slowing down global oil demand and the OPEC+ countries are expected to cut production by at least 1.0 million barrels per day to stabilize global crude oil prices. A panel of the OPEC and its allies recommended cutting oil output by an extra 1 million barrels per day on Tuesday, signaling that Russia and Saudi Arabia were moving closer to a deal to prop up prices, which have been hit by the coronavirus outbreak. We expect crude oil prices remain volatile and $48.80-50 per barrel will act as a major resistance for the prices. We expect prices to move both sides ahead of the OPEC+ meeting this week. Crude oil has support at $46.00–45.50 and resistance is at $47.80–48.50.
Crude oil has support at Rs3,401–3,345, while resistance is at Rs3,545–3,633; traders are suggested to trade in a range with a strict stop-loss.
BASE METALS
Base metals plunge despite 50 basis points interest rate cuts by US Federal Reserve. Trend volatile.
Review
On Tuesday, base metals settled on a mixed note in international markets. 3M LME copper settled at $5,658.25 per metric ton with a loss of 1.39% from the previous close. Base metal prices plunged on Tuesday despite a 50 basis points interest rate cut by the US Federal Reserve. This was the biggest interest rate cut from US Federal Reserve after the 2008 financial crisis. However, base metal prices were unable to sustain at higher levels due to the heavy selloff in global financial markets, and the US 10-year bond yield slumped to record lows. We expect base metal prices to remain volatile today and hold key support levels. Today, copper has support in the range of Rs421–417, while resistance is at Rs431–436. Nickel should trade in the range of Rs922–958, zinc should trade in the range of Rs151–158, lead should trade in the range of Rs141–146, and aluminium should trade in the range of Rs136–140.
Copper has support at Rs421 and Rs417, while resistance is at Rs431 and Rs436; traders are suggested to trade as per levels with a strict stop-loss.
AGRI COMMODITIES
Agricultural commodities recover due to short covering and value buying at lower levels. Trend volatile.
Review
On Tuesday, agricultural commodities witnessed some recovery in domestic markets due to short covering and value buying at lower levels. Most of the agricultural commodities settled on a positive note at NCDEX. Bursa Malaysia KLC also settled positive. Soybean March futures settled on a positive note in domestic markets at Rs3,716 per quintal with a gain of 1.59%. CBOT settled at 904 cents. Other agricultural commodities also settled on a positive note at NCDEX. Chana March futures settled with a gain of 1.14%, while castor seed futures settled with a gain of 0.75%. RM seed April futures closed with a gain of 0.79%. Guar seed settled with a gain of 3.99%, and guar gum also settled with a gain of 3.99%. The spices pack also settled on a positive note; coriander, jeera and turmeric settled positive. Cotton seed oilcake March futures closed positive with a gain of 3.98%. Refined soy oil March futures closed positive at Rs779.60. We expect refined soy oil to trade in the range of Rs766–792.
Soybean has support at Rs3,680–3,655, while resistance is at Rs3,750–3,770. Refined soy oil has support at Rs772–766, while resistance is at Rs786–792. Traders are suggested to trade as per levels with a strict stop-loss.
News Source: Bloomberg, investing.com, kitco.com and ticker news.
Disclaimer: This document has been prepared by IndiaNivesh Commodities Private Limited (IndiaNivesh), for use by the recipient as information only and is not for circulation or public distribution. This document is not to be reproduced, copied, redistributed or published or made available to others, in whole or in part without prior permission from us. This document is not to be construed as an offer to sell or the solicitation of an offer to buy any commodity. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the commodity and currencies mentioned in the report.
Posted by Mehul Kothari | Published on 04-MAR-2020
Daily change & technical levels
Scrip
Close
Change (%)
R2
R1
Pivot
S1
S2
GOLD
41956
1.35
42679
42317
41982
41620
41285
SILVER
44995
1.33
45742
45368
45067
44693
44392
CRUDE
3431
5.15
3565
3498
3391
3324
3217
NG
127.70
2.74
131.60
129.60
127.20
125.20
122.80
ALUMINI
138.60
1.39
141.20
139.90
138.05
136.75
134.90
COPPER
429.00
1.69
434.30
431.70
426.80
424.20
419.30
LEADMINI
144.25
0.35
146.90
145.60
144.60
143.30
142.40
NICKEL
934.10
3.67
953.00
943.60
928.50
919.10
904.00
ZINCMINI
156.25
0.90
159.95
158.10
156.45
154.60
152.95
DIAMOND
3646.05
0.30
3686.00
3666.00
3639.60
3619.60
3593.20
STEELLONG
31430
-0.98
31860
31650
31500
31290
31140
Comex division
Bullions
Last close
Change (%)
Gold
$1594.80
0.48
Silver
$16.73
1.09
Base metal inventory
Scrip
Inventory
Change
Alumni
1071875
-10275
Copper
216950
-1225
Lead
68100
+300
Nickel
235368
-60
Zinc
75200
-75
* Closing rates of 2 Mar & LME stock of 2 Mar
BULLION
Gold and silver prices rebound on hope of interest rate cuts by global central banks. Trend volatile.
Review
On Monday, gold and silver prices settled on a positive note in international markets. Gold April futures settled at $1,594.80 per troy ounce, up by 0.48%, while silver May futures settled at $16.73 per troy ounce, up by 1.09%. Due to weakness in the rupee, domestic markets also settled on a positive note. Gold settled at Rs41,956 per 10 grams with a gain of 1.35%, and silver settled at Rs44,995 per kilogram with a gain of 1.33%. Gold and silver prices recovered on Monday after indications for interest rate cuts from major global central banks to support the global economy, which is already slowing down due to the coronavirus outbreak. Fed Chairman Jerome Powell said Friday afternoon that the Federal Reserve stands ready to act if conditions warrant. Other major central banks have just recently made similar comments. That’s a bullish scenario for the raw commodity sector, including precious metals. A sell-off in domestic equity markets and weakness in the rupee also supported both precious metals at the MCX. We expect prices of both precious metals to remain volatile. Gold has support at $1,584–1,577 and resistance at $1,600–1,614. Silver has support at $16.55–16.40, while resistance is at $16.94–17.20.
Today, gold has support at Rs41,620–41,285, while resistance is at Rs42,317–42,679. Silver has support at Rs44,693–44,392, while resistance is at Rs45,368–45,742. Traders are suggested to trade in a range with a strict stop-loss.
ENERGY
Crude oil gain around 5% on hope of OPEC output cut and interest rate cut by global banks. Trend volatile.
Review
On Monday, crude oil settled on a positive note in international markets as WTI crude settled at $46.75 per barrel, while Brent settled at $52.78 per barrel. Domestic markets also settled on a positive note at Rs3,431 per barrel with a gain of 5.15%. Crude oil prices gained around 5% on Monday after the OPEC hinted at a deep production cut to stabilize global crude oil prices. Crude oil prices crashed last week due to poor global demand due to the coronavirus outbreak. Crude oil prices also got support from the statements of major central banks to cut interest rates to support financial markets. Crude oil prices breached the crucial resistance of $47 per barrel in the intraday session on Monday. Fear of the coronavirus is still looming on global economy. We expect crude oil price to remain volatile today and if it sustains above $47 per barrel, it could test the $48.80–50 per barrel mark. Meanwhile, $45.50 per barrel will act as a major support for crude oil prices. Crude oil has support at $46.00–45.50 and resistance at $48.50–49.20.
Crude oil has support at Rs3,324–3,217, while resistance is at Rs3,498–3,565; traders are suggested to trade in a range with a strict stop-loss.
BASE METALS
Base metals gain on hope of interest rate cuts by major global central banks. Trend volatile.
Review
On Monday, base metals settled on a positive note in international markets. 3M LME copper settled at $5,724.00 per metric ton with a gain of 2.40% from the previous close. Base metal prices gained on Monday after news that major global central banks could cut interest rates to support the global economy, which is struggling from the coronavirus outbreak. The global economy is set to grow only 2.4% this year, the lowest since 2009 and down from a forecast of 2.9% in November, the OECD said on Monday. The OECD also urges governments and central banks to fight back against the crisis. Chinese PMI also plunged to record lows in the month of February due to the coronavirus outbreak. We expect base metals prices to remain volatile but hope of interest rate cuts will continue to support prices at lower levels. Today, copper has support in the range of Rs424–419, while resistance is at Rs432–434. Nickel should trade in the range of Rs918–955, zinc should trade in the range of Rs154–160, lead should trade in the range of Rs142–147, and aluminium should trade in the range of Rs137–141.
Copper has support at Rs424 and Rs419, while resistance is at Rs432 and Rs434; traders are suggested to trade as per levels with a strict stop-loss.
AGRI COMMODITIES
Agricultural commodities plunge on fears of spreading coronavirus in India. Trend volatile.
Review
On Monday, agricultural commodities plunged again. Most of the agricultural commodities are settled in the red due to fears of the coronavirus spreading in India. After a news report that 5 patients in India were infected by the virus, heavy selling was seen in domestic agricultural commodities. Bursa Malaysia KLC also settled negative. Soybean March futures settled on a weaker note in domestic markets at Rs3,654 per quintal with a loss of 1.46%. CBOT settled at 901 cents. Other agricultural commodities settled on a mixed note at NCDEX. Chana March futures settled with a loss of 0.58%, while castor seed futures settled with a loss of 1.17%. RM seed April futures closed with a loss of 1.52%. Guar seed settled with a loss of 1.64%, and guar gum also settled with a loss of 2.82%. The spices pack also settled on a weaker note; coriander, jeera and turmeric settled negative. Cotton seed oilcake March futures closed positive with a gain of 0.94%. Refined soy oil March futures closed negative at Rs759.20. We expect refined soy oil to trade in the range of Rs748–772.
Soybean has support at Rs3,620–3,590, while resistance is at Rs3,700–3,735. Refined soy oil has support at Rs752–748, while resistance is at Rs766–772. Traders are suggested to trade as per levels with a strict stop-loss.
News Source: Bloomberg, investing.com, kitco.com and ticker news.
Disclaimer: This document has been prepared by IndiaNivesh Commodities Private Limited (IndiaNivesh), for use by the recipient as information only and is not for circulation or public distribution. This document is not to be reproduced, copied, redistributed or published or made available to others, in whole or in part without prior permission from us. This document is not to be construed as an offer to sell or the solicitation of an offer to buy any commodity. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the commodity and currencies mentioned in the report.
)
Commodity Report 4th March 2020
Daily change & technical levels
Scrip
Close
Change (%)
R2
R1
Pivot
S1
S2
GOLD
43474
3.62
44599
44036
42955
42392
41311
SILVER
46378
3.07
47876
47127
46101
45352
44326
CRUDE
3457
0.76
3633
3545
3489
3401
3345
NG
133.70
4.70
139.00
136.40
132.60
130.00
126.20
ALUMINI
137.55
-0.76
141.30
139.40
137.90
136.00
134.50
COPPER
425.65
-0.78
436.20
430.90
426.70
421.40
417.10
LEADMINI
143.65
-0.42
146.70
145.20
144.10
142.60
141.50
NICKEL
936.40
0.25
959.20
947.80
936.10
924.70
913.00
ZINCMINI
154.15
-1.34
159.80
157.00
155.00
152.20
150.20
DIAMOND
3666.85
0.57
3705.40
3686.10
3662.30
3643.10
3619.30
STEELLONG
31380
-0.16
31590
31480
31410
31300
31230
Comex division
Bullions
Last close
Change (%)
Gold
$1644.40
3.11
Silver
$17.19
2.74
Base metal inventory
Scrip
Inventory
Change
Alumni
1061375
-10500
Copper
211225
-5725
Lead
68575
+475
Nickel
235254
-114
Zinc
75025
-175
BULLION
Gold and silver prices skyrocket after US Federal Reserve cuts interest rate by 50bps. Trend volatile.
Review
On Tuesday, gold and silver prices settled on a positive note in international markets. Gold April futures settled at $1,644.40 per troy ounce, up by 3.11%, while silver May futures settled at $17.19 per troy ounce, up by 2.74%. Due to weakness in the rupee, domestic markets also settled on a positive note. Gold settled at Rs43,474 per 10 grams with a gain of 3.62%, and silver settled at Rs46,378 per kilogram with a gain of 3.07%. Gold and silver prices extended gains on Tuesday after the US Federal Reserve cut key interest rates by 50 basis points. The Federal Reserve lowered its benchmark interest rate—the Fed funds rate—by 0.5% to counter the negative economic aspects of the coronavirus outbreak. The rate now stands at 1.0 to 1.25%. After interest rate cuts by the US Federal Reserve, the 10 year bond yield in the US slipped below 1%, and aggressive buying was seen in both precious metals. We expect both precious metals to remain volatile. Gold has support at $1,632–1,622 and resistance is at $1,654–1,666. Silver has support at $17.00–16.70, while resistance is at $17.44–17.70.
Today, gold has support at Rs42,392–41,311, while resistance is at Rs44,036–44,599. Silver has support at Rs45,352–44,326, while resistance is at Rs47,127–47,876. Traders are suggested to trade in a range with a strict stop-loss.
ENERGY
WTI Crude oil extends gain on the hope of deep production cut by OPEC and Russia. Trend volatile.
Review
On Tuesday, crude oil settled on a mixed note in international markets as WTI crude settled at $47.18 per barrel, while Brent settled at $51.89 per barrel. Domestic markets also settled on a positive note at Rs3,457 per barrel with a gain of 0.76%. Crude oil prices gained in the early trading session on Tuesday on the hope of a deeper production cut by the OPEC and Russia in the forthcoming meet this week. But after the US Federal Reserve cut interest rates by 50 basis points, profit booking was seen at higher levels. Fear of the coronavirus is slowing down global oil demand and the OPEC+ countries are expected to cut production by at least 1.0 million barrels per day to stabilize global crude oil prices. A panel of the OPEC and its allies recommended cutting oil output by an extra 1 million barrels per day on Tuesday, signaling that Russia and Saudi Arabia were moving closer to a deal to prop up prices, which have been hit by the coronavirus outbreak. We expect crude oil prices remain volatile and $48.80-50 per barrel will act as a major resistance for the prices. We expect prices to move both sides ahead of the OPEC+ meeting this week. Crude oil has support at $46.00–45.50 and resistance is at $47.80–48.50.
Crude oil has support at Rs3,401–3,345, while resistance is at Rs3,545–3,633; traders are suggested to trade in a range with a strict stop-loss.
BASE METALS
Base metals plunge despite 50 basis points interest rate cuts by US Federal Reserve. Trend volatile.
Review
On Tuesday, base metals settled on a mixed note in international markets. 3M LME copper settled at $5,658.25 per metric ton with a loss of 1.39% from the previous close. Base metal prices plunged on Tuesday despite a 50 basis points interest rate cut by the US Federal Reserve. This was the biggest interest rate cut from US Federal Reserve after the 2008 financial crisis. However, base metal prices were unable to sustain at higher levels due to the heavy selloff in global financial markets, and the US 10-year bond yield slumped to record lows. We expect base metal prices to remain volatile today and hold key support levels. Today, copper has support in the range of Rs421–417, while resistance is at Rs431–436. Nickel should trade in the range of Rs922–958, zinc should trade in the range of Rs151–158, lead should trade in the range of Rs141–146, and aluminium should trade in the range of Rs136–140.
Copper has support at Rs421 and Rs417, while resistance is at Rs431 and Rs436; traders are suggested to trade as per levels with a strict stop-loss.
AGRI COMMODITIES
Agricultural commodities recover due to short covering and value buying at lower levels. Trend volatile.
Review
On Tuesday, agricultural commodities witnessed some recovery in domestic markets due to short covering and value buying at lower levels. Most of the agricultural commodities settled on a positive note at NCDEX. Bursa Malaysia KLC also settled positive. Soybean March futures settled on a positive note in domestic markets at Rs3,716 per quintal with a gain of 1.59%. CBOT settled at 904 cents. Other agricultural commodities also settled on a positive note at NCDEX. Chana March futures settled with a gain of 1.14%, while castor seed futures settled with a gain of 0.75%. RM seed April futures closed with a gain of 0.79%. Guar seed settled with a gain of 3.99%, and guar gum also settled with a gain of 3.99%. The spices pack also settled on a positive note; coriander, jeera and turmeric settled positive. Cotton seed oilcake March futures closed positive with a gain of 3.98%. Refined soy oil March futures closed positive at Rs779.60. We expect refined soy oil to trade in the range of Rs766–792.
Soybean has support at Rs3,680–3,655, while resistance is at Rs3,750–3,770. Refined soy oil has support at Rs772–766, while resistance is at Rs786–792. Traders are suggested to trade as per levels with a strict stop-loss.
News Source: Bloomberg, investing.com, kitco.com and ticker news.
Disclaimer: This document has been prepared by IndiaNivesh Commodities Private Limited (IndiaNivesh), for use by the recipient as information only and is not for circulation or public distribution. This document is not to be reproduced, copied, redistributed or published or made available to others, in whole or in part without prior permission from us. This document is not to be construed as an offer to sell or the solicitation of an offer to buy any commodity. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the commodity and currencies mentioned in the report.
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Commodity Report 3rd March 2020
Daily change & technical levels Scrip Close Change (%) R2 R1 Pivot S1 S2 GOLD 41956 1.35 42679 42317 41982 41620 41285 SILVER 44995 1.33 45742 45368 45067 44693 44392 CRUDE 3431 5.15 3565 3498 3391 3324 3217 NG 127.70 2.74 131.60 129.60 127.20 125.20 122.80 ALUMINI 138.60 1.39 141.20 139.90 138.05 136.75 134.90 COPPER 429.00 1.69 434.30 431.70 426.80 424.20 419.30 LEADMINI 144.25 0.35 146.90 145.60 144.60 143.30 142.40 NICKEL 934.10 3.67 953.00 943.60 928.50 919.10 904.00 ZINCMINI 156.25 0.90 159.95 158.10 156.45 154.60 152.95 DIAMOND 3646.05 0.30 3686.00 3666.00 3639.60 3619.60 3593.20 STEELLONG 31430 -0.98 31860 31650 31500 31290 31140 Comex division Bullions Last close Change (%) Gold $1594.80 0.48 Silver $16.73 1.09 Base metal inventory Scrip Inventory Change Alumni 1071875 -10275 Copper 216950 -1225 Lead 68100 +300 Nickel 235368 -60 Zinc 75200 -75 * Closing rates of 2 Mar & LME stock of 2 Mar BULLION Gold and silver prices rebound on hope of interest rate cuts by global central banks. Trend volatile. Review On Monday, gold and silver prices settled on a positive note in international markets. Gold April futures settled at $1,594.80 per troy ounce, up by 0.48%, while silver May futures settled at $16.73 per troy ounce, up by 1.09%. Due to weakness in the rupee, domestic markets also settled on a positive note. Gold settled at Rs41,956 per 10 grams with a gain of 1.35%, and silver settled at Rs44,995 per kilogram with a gain of 1.33%. Gold and silver prices recovered on Monday after indications for interest rate cuts from major global central banks to support the global economy, which is already slowing down due to the coronavirus outbreak. Fed Chairman Jerome Powell said Friday afternoon that the Federal Reserve stands ready to act if conditions warrant. Other major central banks have just recently made similar comments. That’s a bullish scenario for the raw commodity sector, including precious metals. A sell-off in domestic equity markets and weakness in the rupee also supported both precious metals at the MCX. We expect prices of both precious metals to remain volatile. Gold has support at $1,584–1,577 and resistance at $1,600–1,614. Silver has support at $16.55–16.40, while resistance is at $16.94–17.20. Today, gold has support at Rs41,620–41,285, while resistance is at Rs42,317–42,679. Silver has support at Rs44,693–44,392, while resistance is at Rs45,368–45,742. Traders are suggested to trade in a range with a strict stop-loss. ENERGY Crude oil gain around 5% on hope of OPEC output cut and interest rate cut by global banks. Trend volatile. Review On Monday, crude oil settled on a positive note in international markets as WTI crude settled at $46.75 per barrel, while Brent settled at $52.78 per barrel. Domestic markets also settled on a positive note at Rs3,431 per barrel with a gain of 5.15%. Crude oil prices gained around 5% on Monday after the OPEC hinted at a deep production cut to stabilize global crude oil prices. Crude oil prices crashed last week due to poor global demand due to the coronavirus outbreak. Crude oil prices also got support from the statements of major central banks to cut interest rates to support financial markets. Crude oil prices breached the crucial resistance of $47 per barrel in the intraday session on Monday. Fear of the coronavirus is still looming on global economy. We expect crude oil price to remain volatile today and if it sustains above $47 per barrel, it could test the $48.80–50 per barrel mark. Meanwhile, $45.50 per barrel will act as a major support for crude oil prices. Crude oil has support at $46.00–45.50 and resistance at $48.50–49.20. Crude oil has support at Rs3,324–3,217, while resistance is at Rs3,498–3,565; traders are suggested to trade in a range with a strict stop-loss. BASE METALS Base metals gain on hope of interest rate cuts by major global central banks. Trend volatile. Review On Monday, base metals settled on a positive note in international markets. 3M LME copper settled at $5,724.00 per metric ton with a gain of 2.40% from the previous close. Base metal prices gained on Monday after news that major global central banks could cut interest rates to support the global economy, which is struggling from the coronavirus outbreak. The global economy is set to grow only 2.4% this year, the lowest since 2009 and down from a forecast of 2.9% in November, the OECD said on Monday. The OECD also urges governments and central banks to fight back against the crisis. Chinese PMI also plunged to record lows in the month of February due to the coronavirus outbreak. We expect base metals prices to remain volatile but hope of interest rate cuts will continue to support prices at lower levels. Today, copper has support in the range of Rs424–419, while resistance is at Rs432–434. Nickel should trade in the range of Rs918–955, zinc should trade in the range of Rs154–160, lead should trade in the range of Rs142–147, and aluminium should trade in the range of Rs137–141. Copper has support at Rs424 and Rs419, while resistance is at Rs432 and Rs434; traders are suggested to trade as per levels with a strict stop-loss. AGRI COMMODITIES Agricultural commodities plunge on fears of spreading coronavirus in India. Trend volatile. Review On Monday, agricultural commodities plunged again. Most of the agricultural commodities are settled in the red due to fears of the coronavirus spreading in India. After a news report that 5 patients in India were infected by the virus, heavy selling was seen in domestic agricultural commodities. Bursa Malaysia KLC also settled negative. Soybean March futures settled on a weaker note in domestic markets at Rs3,654 per quintal with a loss of 1.46%. CBOT settled at 901 cents. Other agricultural commodities settled on a mixed note at NCDEX. Chana March futures settled with a loss of 0.58%, while castor seed futures settled with a loss of 1.17%. RM seed April futures closed with a loss of 1.52%. Guar seed settled with a loss of 1.64%, and guar gum also settled with a loss of 2.82%. The spices pack also settled on a weaker note; coriander, jeera and turmeric settled negative. Cotton seed oilcake March futures closed positive with a gain of 0.94%. Refined soy oil March futures closed negative at Rs759.20. We expect refined soy oil to trade in the range of Rs748–772. Soybean has support at Rs3,620–3,590, while resistance is at Rs3,700–3,735. Refined soy oil has support at Rs752–748, while resistance is at Rs766–772. Traders are suggested to trade as per levels with a strict stop-loss. News Source: Bloomberg, investing.com, kitco.com and ticker news. Disclaimer: This document has been prepared by IndiaNivesh Commodities Private Limited (IndiaNivesh), for use by the recipient as information only and is not for circulation or public distribution. This document is not to be reproduced, copied, redistributed or published or made available to others, in whole or in part without prior permission from us. This document is not to be construed as an offer to sell or the solicitation of an offer to buy any commodity. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. The information contained in this document has been obtained from sources that are considered as reliable though its accuracy or completeness has not been verified by IndiaNivesh independently and cannot be guaranteed. Neither IndiaNivesh nor any of its affiliates, its directors or its employees accepts any responsibility or whatever nature for the information, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this material only. IndiaNivesh directors and its clients may have holdings in the commodity and currencies mentioned in the report. )
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Share Market Today 5th March 2020
Market Recap Market Outlook Bank Nifty Outlook Note on Participants Activity Derivative Outlook Exhibit 6: LONG BUILT UP SYMBOL Close Price change % OI OI Change % NIFTYIT 15799 0.74% 5650 15.31% TCS 2064.05 1.74% 6995750 4.85% POWERGRID 185.7 3.40% 51368000 4.46% INFY 759.25 1.25% 25993200 3.73% RBLBANK 292.95 0.86% 16432500 3.40% Source: Company, IndiaNivesh Research Exhibit 7: SHORT BUILT UP SYMBOL Close Price change % OI OI Change % TATACHEM 316.2 -56.24% 855000 112.53% MOTHERSUMI 99.85 -5.09% 28170000 19.31% PVR 1655.85 -3.82% 1622000 14.19% MFSL 591.5 -0.08% 2593500 8.96% YESBANK 24.05 -9.25% 337400800 7.84% Source: Company, IndiaNivesh Research Exhibit 8: LONG UNWINDING SYMBOL Close Price change % OI OI Change % UBL 1223.2 -0.77% 1383200 -12.87% TORNTPOWER 314.7 -1.55% 3552000 -10.51% CENTURYTEX 501.85 -5.18% 3202800 -7.97% UJJIVAN 335.4 -1.58% 4904500 -7.80% ESCORTS 834.05 -2.47% 4522100 -5.95% Source: Company, IndiaNivesh Research Exhibit 9: SHORT COVERING SYMBOL Close Price change % OI OI Change % CIPLA 444.4 5.17% 11569000 -10.27% GAIL 106.05 2.46% 33582864 -9.00% EXIDEIND 161.25 0.94% 9712100 -8.60% NMDC 93.7 0.92% 30570000 -6.84% HINDPETRO 202.4 0.32% 15750000 -6.10% Source: Company, IndiaNivesh Research Nifty 50 Pivots SYMBOL Close S2 S1 Pivot R1 R2 ADANIPORTS 345.95 335.32 340.63 345.22 350.53 355.12 ASIANPAINT 1847.95 1783.08 1815.52 1836.48 1868.92 1889.88 AXISBANK 682.20 654.47 668.33 682.17 696.03 709.87 BAJAJ-AUTO 2711.50 2598.83 2655.17 2709.83 2766.17 2820.83 BAJFINANCE 4286.40 4064.27 4175.33 4336.07 4447.13 4607.87 BAJAJFINSV 8799.70 8346.50 8573.10 8819.85 9046.45 9293.20 BPCL 418.70 394.30 406.50 417.60 429.80 440.90 BHARTIARTL 516.75 493.58 505.17 518.98 530.57 544.38 INFRATEL 221.05 212.75 216.90 219.95 224.10 227.15 BRITANNIA 3063.05 3005.02 3034.03 3057.02 3086.03 3109.02 CIPLA 447.65 409.35 428.50 439.15 458.30 468.95 COALINDIA 178.10 171.63 174.87 177.33 180.57 183.03 DRREDDY 3171.35 2980.62 3075.98 3131.37 3226.73 3282.12 EICHERMOT 17254.20 16058.07 16656.13 17468.07 18066.13 18878.07 GAIL 106.05 100.62 103.33 105.12 107.83 109.62 GRASIM 689.50 666.63 678.07 693.43 704.87 720.23 HCLTECH 563.10 552.10 557.60 566.50 572.00 580.90 HDFCBANK 1148.85 1107.08 1127.97 1153.98 1174.87 1200.88 HEROMOTOCO 2046.35 1967.22 2006.78 2040.07 2079.63 2112.92 HINDALCO 160.60 154.93 157.77 159.73 162.57 164.53 HINDUNILVR 2175.85 2137.92 2156.88 2170.97 2189.93 2204.02 HDFC 2206.05 2164.55 2185.30 2200.95 2221.70 2237.35 ICICIBANK 508.35 487.18 497.77 507.63 518.22 528.08 ITC 187.50 180.87 184.18 189.87 193.18 198.87 IOC 106.60 104.03 105.32 107.03 108.32 110.03 INDUSINDBK 1065.95 1013.68 1039.82 1077.13 1103.27 1140.58 INFY 758.75 739.32 749.03 755.27 764.98 771.22 JSWSTEEL 245.60 231.80 238.70 243.75 250.65 255.70 KOTAKBANK 1607.95 1550.72 1579.33 1606.22 1634.83 1661.72 LT 1176.65 1144.32 1160.48 1174.17 1190.33 1204.02 M&M 474.65 450.22 462.43 469.72 481.93 489.22 MARUTI 6384.35 6124.12 6254.23 6339.12 6469.23 6554.12 NTPC 107.95 105.32 106.63 108.82 110.13 112.32 NESTLEIND 16541.50 15785.50 16163.50 16398.00 16776.00 17010.50 ONGC 92.80 88.60 90.70 92.80 94.90 97.00 POWERGRID 197.05 185.08 191.07 194.53 200.52 203.98 RELIANCE 1339.70 1287.90 1313.80 1333.80 1359.70 1379.70 SBIN 285.30 266.57 275.93 284.47 293.83 302.37 SUNPHARMA 405.45 376.35 390.90 401.90 416.45 427.45 TCS 2083.20 1998.10 2040.65 2067.55 2110.10 2137.00 TATAMOTORS 126.20 116.40 121.30 125.45 130.35 134.50 TATASTEEL 40.75 38.42 39.58 40.77 41.93 43.12 TECHM 771.30 737.87 754.58 764.72 781.43 791.57 TITAN 1250.95 1196.28 1223.62 1244.63 1271.97 1292.98 UPL 511.60 478.93 495.27 514.43 530.77 549.93 ULTRACEMCO 4172.80 3996.93 4084.87 4204.93 4292.87 4412.93 VEDL 119.35 113.25 116.30 118.15 121.20 123.05 WIPRO 228.85 219.72 224.28 227.02 231.58 234.32 YESBANK 29.30 26.90 28.10 29.90 31.10 32.90 ZEEL 251.75 239.48 245.62 250.03 256.17 260.58 Note: The levels for TATASTEEL are of TATASTEEL Partly Paid up Share. Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.)