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CAPITALSTARS – MCX COMMODITY MARKET NEWS & LEVELS – 20 JANUARY 2020

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MCX Gold Breaks Under Rs 40K, Local Demand Concerns Weigh.

COMEX Gold futures gained from two week low last week. However, US equities hit record highs, capping gains in Gold. The COMEX Gold futures ended just under $1560 per ounce. Gold might not extend the gains much though as Indian bullion demand stays tepid. India’s Gold imports stood at Rs 17564 crore in December 2019, down 3.30% compared to December 2018. In April-December 2019, the total imports stood at Rs 161924 crore, down 5.83%. A recovery in the US dollar index would be in focus in near term. Gold could moderate if the US dollar index rises further after hitting a five week high of 97.41 in the middle of January 2020. MCX Gold futures extended a drop under Rs 40000 per 10 grams and fell to a low under Rs 39500 per 10 grams.

Crude Sees Sideways Action Last Week.

WTI Crude oil prices edged up from five week low last week but stayed cautious after recent surge. The commodity ended around $59 per barrel. MCX Crude oil futures closed at Rs 4146 per barrel after briefly falling under Rs 4100 per barrel. The US Energy Information Administration (EIA) noted that in the first half of 2020, it expects significant liquid fuels supply growth. Production restraint from members of the Organization of the Petroleum Exporting Countries (OPEC) and several non-member countries (OPEC+), most notably Russia, and accelerating global demand growth will be more than offset by non-OPEC production, largely in the United States, Norway, Brazil, and Canada. EIA forecasts an average global stock build of 520,000 b/d in the first half of the year, which will put downward pressure on crude oil prices.

Copper Sees Choppy Movement.

COMEX Copper consolidated just under its eight month high of 2.86 per pound amid supportive equities. MCX Copper futures managed to break under Rs 450 per kg but faced persistent selling pressure thereafter. Chinese copper demand figures were optimistic as well. China’s imports of copper concentrate rose 11.6% in 2019, according to data from the General Administration of Customs released on Tuesday. In December, China imported 1.93 million mt of copper concentrate, down from an all-time high of 2.16 million mt in November, but up 31.8% from the same month 2018. China’s imports of unwrought copper and copper products rose to 527,000 mt last month, from 483,000 mt in November. China’s unwrought copper imports rose 9.1% in December from the previous month to their highest since March 2016. However, the total unwrought imports for 2019 came in at 4.98 million mt, down 6%.

Precious Metals

CS GOLD (FEB) OVERVIEW:
TREND : BULLISH
RESIST 2: 40300
RESIST 1: 40100
SUP 1:39800
SUP 2: 39700

CS SILVER (MAR) OVERVIEW:
TREND : BULLISH
RESIST 2:47200
RESIST1:47000
SUP 1: 46600
SUP 2: 46400

Base Metals

CS COPPER (JAN) OVERVIEW:
TREND : BULLISH
RESIST 2:457
RESIST 1:455
SUP 1:452
SUP 2:450

CS NICKEL (JAN) OVERVIEW:
TREND : SIDEWAYS
RESIST 2: 1030
RESIST 1:1025
SUP 1:1015
SUP 2:1010

Energy

CS CRUDE OIL (FEB) OVERVIEW:
TREND : BULLISH
RESIST 2:4260
RESIST 1:4230
SUP 1: 4130
SUP 2: 4100

CS NATURAL GAS (JAN) OVERVIEW:
TREND : BEARISH
RESIST 2:148
RESIST 1:143
SUP 1: 140
SUP 2: 135


MCX NATURAL GAS JAN on FRIDAY as seen in the Daily chart opened at 151.50 levels and made day low of 142.50 levels. During this period NICKEL JAN high is 151.50 levels and finally closed at 142.80 levels. Now, there are chances of down movement technically & fundamentally.

Screenshot (723)

DAILY RECOMMENDATION: SELL NATURAL GAS JAN BELOW 142 LEVELS FOR TARGET OF 138/135 WITH SL 148 OF LEVELS.

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