Crude oil plunged further on Wednesday as demand dwindled amid lockdown in multiple countries. Along with that, an ongoing price war between Russia and Saudi Arabia also put pressure on crude.

Crude oil was down 5.48 per cent to Rs 1,588. Natural gas also dropped 3.81 per cent to Rs 126.40, while gold slipped 0.32 per cent to Rs 42,820.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counters can trade mixed. Gold can move towards Rs 43,200 while taking support near Rs 42,600, while silver may recover towards Rs 40,000 while taking support near Rs 39,000.

Base metals: Base metals may trade with a positive bias. Copper may recover towards Rs 380 while taking support near Rs 370. Zinc may recover towards Rs 147 by taking support near Rs 140. Lead may remain in range as it can face resistance near Rs 135 while taking support near Rs 130. Nickel may recover towards Rs 875 while taking support near Rs 855.

Energy: Crude oil may witness some short covering at lower levels. It can bounce towards Rs 1,730 by taking support near Rs 1,600. Natural gas can dip towards Rs 125 by taking resistance near Rs 134.

Spices: Turmeric futures (Apr) are expected to trade with an upside bias holding on the support near Rs 5,750, while the upside may remain capped near Rs 5,900. Jeera futures (Apr) are likely to consolidate and hold its gains in the range of Rs 14,000-14,200. The short covering in coriander futures (April) would probably face resistance near Rs 5,900-5,950 and the upside is expected to remain capped.

Oilseeds: Soybean futures (April) are expected to trade with a positive bias in the range of Rs 3,750-3,850. Mustard futures (April) are expected to remain stable in the range of Rs 4,085-4,145. Soy oil futures (April) would probably witness a consolidation in the range of Rs 820-833. While, CPO futures (Apr) may trade sideways in the range of Rs 655-670.

Other commodities: Cotton futures (Apr) are likely to trade with a downside bias in the range of Rs 16,000-16,400. Castor seed futures (April) might trade sideways in the range of Rs 4,000- 4,100. Mentha oil (April) is expected to take support near Rs 1,080, while the upside may get extended towards Rs 1,120.

Source

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