BULLIONS

Bullions counter may trade with mixed path as it traded in a narrow price range on Wednesday, as investors refrained from taking big bets ahead of the U.S. Federal Reserve’s policy decision due later in the day. Gold can move in range of 56900-57300 while Silver also can move in range of 68400-69400. The Fed’s policy decision is due at 1900 GMT, followed by a press conference from Chair Jerome Powell at 12.30 GMT. The U.S. central bank is widely expected to scale back rate hikes to 25 basis points (bps) from 50 bps in December. The Bank of England and the European Central Bank are expected to raise rates by 50 bps on Thursday.

BASE METALS

In base metal counter, Copper can trade on upside path as it can move in range of 782-794. In terms of fundamentals, the inventory of copper cathode has continued to increase following Chinese New Year holidays amid sluggish downstream buying interest. Most downstream demand still needs time to recover, and copper prices are still fluctuating at high levels. The current consumption is still weak, and the overall market is unlikely to improve until after February 5. Copper prices are expected to remain range bound until consumer demand fully recovers. Zinc may trade with sideways to upside path as it can move in range of 293-302. Aluminum can remain in range of 224-228.  There are rumours of aluminium production cuts in Yunnan, triggering bullish sentiment in the aluminium market. This, coupled with expectations for consumption recovery, will keep aluminium prices firm.

ENERGY: Crude oil may trade on firm path as it can test 6600 while taking support near 6400. Oil prices rose on signs of slowing inflation in the United States eased fears that the world’s largest oil user may face a recession because of further interest rate hikes and a weaker dollar supported some buying interest. All eyes will be on a meeting on Wednesday of the Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, where producers are expected to endorse their current output targets agreed in November. OPEC’s oil output fell in January, as Iraqi exports dropped and Nigeria’s output did not recover, with the 10 OPEC members pumping 920,000 barrels per day (bpd) below the group’s targeted volumes under the OPEC+ agreement. Natural gas prices can witness short covering as it can move range of 220-245.

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

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