10 commodities that can give up to 8% return this week

MCX Gold prices have been trading in a consolidation range for the past few days. The moving average crossover on the daily chart is restricting the prices from breaking above the recent highs. The level of Rs 49,900 will act as key resistance on a closing basis. The prices are likely to consolidate lower as long as they do not cross this level on a closing basis. A 'sell' is recommended on gold (Feb) in the range of Rs 49,200-49,300 for a target of Rs 48,500-48,000 with a stop loss above Rs 49,900.

(Analysts: NS Ramaswamy, Head of Commodities, Ventura Securities)

Crude Oil prices have been consolidating in a narrow range for the last few days. On the downside, the key support is at Rs 3,740, which is the 20-DMA level. Any dip in the prices can be used as a buying opportunity this week. A 'buy' is recommended on crude oil (Feb) in the range of Rs 3,800-3,750 for a target of Rs 3,950-4,000 with a stop loss below Rs 3,650.

(Analysts: NS Ramaswamy, Head of Commodities, Ventura Securities)

Copper prices have been hovering near the 20-MA level on the daily charts for the past few trading sessions, which is now placed near Rs 609. The prices need to confirm the strong closing level in either direction to confirm the next leg of movement. With the medium-term trend being bullish, the prices are likely to break on the higher side only. A 'buy' is recommended on copper (Feb) above Rs 620 for a target of Rs 635-645 with a stop loss below Rs 605.

(Analysts: NS Ramaswamy, Head of Commodities, Ventura Securities)

Technically, NCDEX guar gum has broken above 100-EMA level on the daily chart, and is sustaining above that level, which is now placed near Rs 6,100. Also, on the weekly chart, the prices have broken above the trend line, which suggests the fresh start of an upmove. A 'buy' is recommended on guar gum (Feb) in the range of Rs 6,350-6,320 for a target price of Rs 6,650/6,800 with a stop loss below Rs 6,050.

(Analysts: NS Ramaswamy, Head of Commodities, Ventura Securities)

This week, traders should go for a 'buy on dips' strategy in silver where one should look for entry around Rs 65,400-65,600 for a target of Rs 68,500 with a stop loss around Rs 64,400. The levels of Rs 64,800-65,000 will continue to be important and therefore, there will be plenty of buyers entering at these prices. If the market can break the Rs 67,800 mark, it is likely to go higher.

(Analyst: Kshitij Purohit, Lead Commodity & Currency at CapitalVia Global Research)

Natural gas has traded lower after hitting the Rs 195 mark, and there is strong support at Rs 185, which is its 200-weekly moving average. According to the National Oceanic Atmospheric Administration, the weather is expected to be warmer than normal throughout the midwest for the next 6-10 and 8-14 days, a period which can be marked with less demand and volumes in gas. This week, traders should keep an eye around the support level of Rs 187 for shorting natural gas. Traders must follow a stop loss of Rs 196 for a target of Rs 172.

(Analyst: Kshitij Purohit, Lead Commodity & Currency at CapitalVia Global Research)

Nickel prices are approaching the $20,000/t level, which is needed to stimulate investment in new production. Back home, MCX Nickel has given a closing on high as a doji candle on the weekly charts. MCX Nickel has bounced back from the support of Rs 1,305 and maintained to close above Rs 1,325 last week. The immediate support is at 15-SMA on the hourly chart, placed at Rs 1,318. Technically, traders should look forward for a sell-on-rise strategy where some selling opportunities may be found from the previous week’s high around Rs 1,335-1,330. The target should be around Rs 1,265-1,262.50, whereas one must maintain a stop loss above Rs 1,341.

(Analyst: Kshitij Purohit, Lead Commodity & Currency at CapitalVia Global Research)

Zinc has bounced back from the crucial level of Rs 211 on Friday, and managed to settle above Rs 215 last week. Technically, zinc traded in the range of Rs 214-220 in the previous week, and is making lower low and lower high candlestick patterns on a weekly basis. Also, it gave a weekly closing below the 50-day SMA. Traders should look at any selling opportunity from higher levels this week. The optimal range to sell will be around Rs 218.50. A stop loss around Rs 225.70 is advised, with an aim for the next target below the November’s low of Rs 201.50.

(Analyst: Kshitij Purohit, Lead Commodity & Currency at CapitalVia Global Research)

Lead futures have consolidated quite a bit last, with a rangebound momentum between Rs 163 and Rs 166. It bounced back from the Rs 165 mark in the past couple of sessions, and managed to close on a higher note at Rs 166.95 last week. On the weekly charts, the lead February contract has made a higher-high closing for a fourth straight week. This week, traders should go for a 'buy-on-dips' opportunity from the level of Rs 162.75-163.25, and aim for a target above Rs 167.75 with a stop loss below Rs 159.

(Analyst: Kshitij Purohit, Lead Commodity & Currency at CapitalVia Global Research)

Aluminum is trading on a sideways-to-negative note after taking resistance of its Rs 50-day SMA, which placed at Rs 164.50. Overall, weakness in the metal pack and worries on the lockdown front will lead to aluminium following the same trend. Strong support on the downside is at Rs 157 and Rs 155. Resistance for the metal is at Rs 167 and Rs 170. For this week, traders should look forward for a 'sell on high' opportunity. Ideal selling positions should be initiated between the range of Rs 163.50 and 164, and one may aim for a target above Rs 156 with a stop loss around Rs 168.

(Analyst: Kshitij Purohit, Lead Commodity & Currency at CapitalVia Global Research)