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Commodity outlook: Crude oil slips as demand dwindles; here’s how others may fare
New Delhi: Crude oil continued to slide on Thursday as demand dwindled in most countries as they have gone under lockdown to check the spread of Covid-19. Precious metals and base metals also fell amid a rush for cash.
Crude oil futures were down 4.13 per cent at Rs 1,878, while gold dipped 1.5 per cent. Silver, nickel and copper were down up to 3 per cent.
Here is how SMC Global expects commodities to trade today:
Bullion: Bullion counter can witness some profit booking at higher levels. Gold can dip towards Rs 41,800 while taking resistance near Rs 42,500, while silver may correct lower towards Rs 41,000 while facing resistance near Rs 42,300.
Base metals: Base metals may trade mixed. Copper (Apr) may dip towards Rs 368 while taking resistance near Rs 380. Zinc (Apr) may recover towards Rs 145 by taking support near Rs 141. Lead (Apr) may remain in range as it can face resistance near Rs 134 while taking support near Rs 130. Nickel may dip towards Rs 860 while taking resistance near Rs 880. Aluminum (Apr) may remain in range of Rs 133-136.
Energy: Crude oil may remain under pressure. It can dip towards Rs 1,900 by taking resistance near Rs 2,000. Natural gas (Apr) can remain in a narrow range of Rs 130-138.
Spices: Turmeric futures (April) are expected to trade higher and test Rs 5,900-6,000. Jeera futures (April) are likely to test Rs 14,800-15,000. Coriander futures (April) are expected to go further higher towards Rs 6,300-6,400. Cardamom futures (April) may plunge further towards Rs 1,920-1,900.
Oilseeds: Soybean futures (April) are expected to trade with a positive bias and test Rs 3,885- 3,910. Mustard futures (April) are looking bullish and are likely to gain further and test Rs 4,200-4,220. Soy oil futures (April) will possibly continue to show upside momentum and move higher towards Rs 805-815, taking support near Rs 785. CPO futures (April) are expected to trade with an upside bias in the range of Rs 640-660.
Other commodities: Cotton futures (April) are likely to trade sideways in the range of Rs 16,000-16,700 with upside getting capped. Mentha oil futures (April) are expected to trade with a downside bias in the range of Rs 1,040-1,060. Castor seed futures (April) are expected to move higher towards Rs 4,100-4,150.