10 commodity bets that may deliver solid returns this week

MCX gold prices are finding resistance near the 20 DMA level, which is now placed near Rs 48,400. After logging a high of Rs 48,374, MCX gold retreated back below the Rs 48,000 mark. Going forward, this level is expected to act as strong resistance for the yellow metal. Sell gold futures (April) in the range of Rs 47,200-47,500 for a target of Rs 46,500/45,500 with a stop loss above Rs 48,400.

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

MCX crude oil rates are holding above the Rs 4,200 mark, and are in a strong uptrend. Any dip in the prices can be used as a buying opportunity with a stop loss below the 20-DMA level, which is now placed near Rs 4,000. Buy crude oil futures (Feb) in the range of Rs 4,200-4,150 for a target of Rs 4,400/4,500 with a stop loss below Rs 4,000.

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

As per last week’s view, MCX copper prices reached a target price of Rs 635. The rates are in a strong uptrend, which is likely to continue. Any dip in prices can be viewed as a buying opportunity. Buy the February copper contract in the range of Rs 630-625 for a target price of Rs 650-670 with a stop loss below Rs 610.

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

Technically, NCDEX coriander is looking strong with the momentum on the upside. The RSI indicator is showing strength in the momentum on the weekly chart. Also, the prices have broken above the key resistance level, and are likely to head towards the Rs 7,000 level in the coming days. Buy the April contract in the range of Rs 6,450-6,400 for a target price of Rs 6,800-7,000 with a stop loss below Rs 6,200.

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

This week, traders should buy silver on dips where one should look to enter around Rs 67,300 for a target price of Rs 71,500 with a stop loss of around Rs 65,500. Silver is trading volatile now and the market is not sustaining below Rs 67,000 on a closing basis. The US stimulus package of $1.9 trillion is likely to be announced soon, after which, industry demand is likely to drive the market. Silver is not to be shorted until and unless it gives a sustainable closing below Rs 65,000 on MCX, and $23 per ounce in the international market.

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

Traders should keep an eye around the support of Rs 200 for long in natural gas, for a target price of Rs 224, but must keep a stop loss at Rs 188. Natural gas traded after a gap-up opening at the start of the week. The weather is expected to be much colder in the western portion of the US, and much warmer across the East over the next two weeks. This should increase heating demand in the West, and generate a divergence in natural gas prices.

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

Traders should buy nickel on dips for a target price of around Rs 1,365-1,367 with a stop loss above Rs 1,317. Nickel gave a fresh high around Rs 1,360 without strong volumes in the previous week, further bullishness was seen in the price once it started to trade above the 110-SMA, placed at Rs 1,327 on the hourly chart, which is the immediate support for nickel.

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

Traders should buy zinc on dips. The optimum range to take any long position should be around Rs 219. A target price of Rs 227-229 is anticipated in zinc, with a stop loss recommended at Rs 216. Technically, zinc futures have traded in a rising channel on the four-hour chart for the last one week, and made a double bottom near Rs 204 on the four-hour chart. The immediate support in MCX zinc is at the 110-SMA, placed at Rs 219.20 on the one-hour chart. There is strong resistance at Rs 226.60.

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

Traders should buy lead on dips. The correct range to buy should be around Rs 167.70-168.20, for a target price of Rs 174.70-177 with a stop loss around Rs 163.7. Lead has come down after a stiff fall, having slid between Rs 160 and Rs 162. There is strong support at Rs 160, which is the 50-day SMA. The immediate resistance would be Rs 172.75, above which, the price is likely to move towards Rs 177.

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

Traders should buy aluminum around Rs 165.20-165.70, with an optimum target around Rs 177 with a stop loss around Rs 164.10. Aluminum prices remained positive, with a double-bottom formation on the daily chart near Rs 160-159.50 levels. The price has made multiple dips around Rs 160.80-160.75. Buying from lower levels is recommended with Rs 159.50 as support.

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