Market Update (Bullions)
Bullion counter may trade with sideways to positive bias as old prices rose for a third consecutive session on Tuesday as the dollar weakened on expectations that the U.S. Federal Reserve will maintain a dovish tone at its monetary policy meeting this week. Traders currently expect there will be no U.S. rate hikes this year, and is even building in bets for a rate cut in 2020. Federal Reserve Chairman Jerome Powell will speak at a news conference on Wednesday. Gold can witness bounce back towards 31800. Silver can take support near 37800 and can recover towards 38250. Prime Minister Theresa May’s Brexit plans were thrown into further turmoil on Monday when the speaker of parliament ruled that she could not put her divorce deal to a new vote unless it was re-submitted in a fundamentally different form. European Union leaders could hold off making a final decision on any Brexit delay when they meet in Brussels later this week, senior diplomats in the bloc said, depending on what exactly British Prime Minister Theresa May asks them for.
Market Update (Base Metals)
Base metals prices may trade with positive bias. Copper may test 446 while taking support near 441 in MCX. Copper prices ticked up on Tuesday, supported by China’s announcement to cut tax for manufacturers from next month to boost growth in the world’s second-largest economy. China will cut value-added tax for manufacturing and other sectors on April 1, Premier Li Keqiang said on Friday, adding that cuts in taxes and fees remained a key measure to cope with downward pressure on its economy. Zinc can take support near 191 while facing resistance near 196. Lead can move in range of 138-142. Nickel can also test 900 while taking support near 880. Aluminum prices may trade in range of 145-147.50. Aluminium and nickel contracts ticked up on both London and Shanghai exchanges, with the three-month London aluminium hovering near an over-two-week high level.
Market Update (Energy)
Crude oil (Apr) may trade on sideways path as it may trade in range of 4060-4120 in MCX. Oil prices were near 2019 highs on Tuesday, supported by supply cuts led by producer club OPEC. U.S. sanctions against oil producers Iran and Venezuela are also boosting prices, although traders said the market may be capped by rising U.S. output. The Organization of the Petroleum Exporting Countries (OPEC) on Monday scrapped its planned meeting in April, effectively extending supply cuts that have been in place since January until at least June, when the next meeting is scheduled. OPEC and a group of non-affiliated producers including Russia, known as OPEC+, started withholding supply to halt a sharp price drop in the second-half of 2018, when markets came under pressure from surging output as well as an economic slowdown. Natural gas may trade with mixed bias as it can take support near 193 while taking resistance near 196 in MCX.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
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