With gold hovering near the $1,800 per ounce mark, silver eyeing $23 an ounce and crude oil near $80 a barrel, are there any trading opportunities in commodities now? Analysts have handpicked six bets to make the most of the current juncture in the market. On their playbooks now are gold, silver, crude oil and other key commodities.
Buy Metaldex January futures | Target price: Rs 17,400 | The index looks firm on the four-hour chart with an attractive Ichimoku pattern. There are signs the Metaldex could continue to rise with increased participation. One can initiate longs above Rs 17,200 with a stop loss below Rs 17,100. (Analyst: Ajay Kedia, Kedia Advisory)
Sell natural gas futures | Target price: Rs 288 | Stop loss: Rs 195 | NYMEX natural gas might move in a range of $3.78-$4 in the coming session. On MCX, the January contract is expected to meet strong resistance at Rs 300-303, and find support at Rs 295-292. On the hourly chart, MCX LNG futures have formed a descending channel pattern. One can initiate shorts at Rs 292. (Analyst: Kshitij Purohit, CapitalVia Global Research)
Buy crude oil January futures | Target price: Rs 5,870 | Stop loss: Rs 5,450 | Longs can be initiated in MCX crude oil futures for the month of January at Rs 5,580. Despite the rapid spread of the Omicron variant of COVID-19, crude oil remains supported by supply outages and expectations that US inventories fell. Support also comes from high aggregated production disruptions in Ecuador, Libya and Nigeria. Market participants are awaiting an OPEC+ meeting on January 4, in which the alliance will decide whether to go ahead with a planned production increase. (Analyst: Amit Sajeja, Motilal Oswal Financial Services)
Buy copper January futures | Target price: Rs 752 | Stop loss: Rs 742.6 | Beyond $9,650, sideways to slight positive momentum might be seen in LME copper up to $9,698-$9,740 levels with support at $9,570-$9,488. On MCX, above Rs 745, the January contract of copper could rise to Rs 748-752 levels with support at Rs 743-741. Copper has formed a symmetric triangle pattern and kept within a channel with upside momentum. On the hourly chart, key support is expected around Rs 743.3, which is its 15-day simple moving average, and major resistance at Rs 756.6. Longs can be initiated above Rs 746.2. (Analyst: Kshitij Purohit, CapitalVia Global Research)
Buy silver March futures | Target price: Rs 63,500 | The white metal looks attractive, having formed an Ichimoku pattern on the four-hour chart. Technically, there are signs that silver could continue to move higher with increased participation. In many cases, such patterns are followed by a strong bull run and not a short-lived trend. On the short-term chart, there is a price volume breakout of a multi-week consolidation, which is considered extremely positive. One can initiate a 'buy' around 61,700 with a stop loss below Rs 61,000. (Analyst: Ajay Kedia, Kedia Advisory)
Buy nickel futures | Target price: Rs 1,575 | Stop loss: Rs 1,551 | Resistance can be expected in the Rs 1,570-1,579 band on MCX nickel January futures, and support at Rs 1,558-1,546. The contract has formed a falling channel on the intraday chart. In the past few sessions, nickel has remained within this channel with obstacles around Rs 1,550. Longs can be initiate at Rs 1,560. (Analyst: Kshitij Purohit, CapitalVia Global Research)