BULLIONS

Bullions counter can witness some profit booking at higher levels as the U.S. dollar firmed, while expectations of a slowdown in the pace of Federal Reserve interest rate hikes limited the losses. Gold can move in range of 56100-56600 while Silver also can move in range of 68500-69600. Investors will keep an eye out for the U.S. producer price index (PPI) and retail sales data due later in the day. The U.S. central bank raised rates by 75 basis points (bps) four times last year, before slowing to a 50-bp increase in December. Traders are mostly pricing in a 25-bp hike at the Fed’s next policy meeting. The stopping point for Fed rate increases will depend on the path of inflation, Richmond Federal Reserve Bank President Tom Barkin said on Tuesday.

BASE METALS

In base metal counter, Copper can continue further gains as it can move in range of 765-776. In China on the demand side, only a very few buyers still had restocking demand, and most downstream players have already been in holiday. Copper price is likely to remain strong with bulls on the macro front. The International Monetary Fund (IMF) Managing Director Georgieva said global growth is expected to bottom out in 2023, despite the on-going war in Ukraine and rising interest rates. Zinc may move on firm path as it can move in range of 280-290. Aluminum can trade on upside path as it can move range of 218-226.

ENERGY: Crude oil may continue to trade higher as it can test 6750 while taking support near 6500. Oil price extended gains, driven by optimism that a relaxation of China’s strict COVID-19 curbs will lead to a recovery in fuel demand in the world’s top oil importer.  China’s gross domestic product expanded 3% in 2022, missing the official target of “around 5.5%” and marking its second-worst performance since 1976. The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report Chinese oil demand would grow 510,000 barrels per day (bpd) this year after posting in 2022 its first contraction for years due to COVID containment measures. But OPEC kept its 2023 global demand growth forecast unchanged at 2.22 million bpd. Natural gas prices can trade higher as it can move in range of 295-315.

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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