DAILY MARKET NEWS AND OUTLOOK

BULLIONS

Bullions counter may remain on downside path on stronger greenback. U.S. central bank is widely anticipated to maintain its policy rate during its upcoming meeting, but traders are pricing in a 73% probability of an interest rate cut in March, according to the CME Fedwatch tool. In contrast, ECB officials pushed back against expectations of rapid rate cuts in the Eurozone this year. Physically, gold demand in key Asian markets strengthened, driven by the approaching Chinese New Year, particularly in China and Singapore. Gold can move in range of 61800-62200 while silver also can move in range of 71000-72500.

BASE METALS

In base metal counter, Copper can move in range of 712-716. Aluminium may trade in range of 198-203. China’s primary aluminium output climbed to a record in 2023 but the growth rate slowed, data showed on Wednesday, amid weather-related production curbs at smelters in the country’s southwest. The world’s biggest aluminium producer churned out 41.59 million metric tons of primary aluminium last year, according to data from the National Bureau of Statistics. Output in 2023 grew modestly as capacity neared a government-imposed ceiling, and was affected by power shortages in the country’s southwest, state-backed research house Antaike said in a report. China in 2018 set a national capacity cap of 45 million tons for aluminium as part of its efforts to control power consumption in the energy-intensive sector.

ENERGY

Crude oil may trade lower as it may move in range of 5900-6050. Oil fell on Wednesday as economic growth in China, the world’s second-largest crude user, slightly missed expectations, raising concerns about future demand increases while U.S. dollar strength dented investor’s risk appetite. Brent crude rose slightly on Tuesday while WTI fell as investors saw fundamentals weakening in the U.S. but the ongoing naval and air conflicts in the Red Sea increased concerns of tankers having to reroute to avoid the area, increasing costs and the amount of time for deliveries. The U.S. on Tuesday mounted fresh strikes against Iran-aligned Houthi militants in Yemen after a Houthi hit a Greek vessel in the Red Sea. Natural gas prices may trade on weaker path as it may move in range of 225-245.

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.

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