BULLIONS

Bullions counter may witness some profit booking at higher levels as yellow metal eased from a 1-1/2-month high touched in the previous session, dragged by a slightly stronger dollar, even as investors bet that recent U.S. economic readings make the case for a pause in the Federal Reserve’s rate-hike stance. Gold can move in range of 59600-59900 while silver also can move in range of 75000-76400. The dollar index edged higher from a more than one-year low hit on Tuesday, making gold more expensive for holders of other currencies. China said it would formulate plans to stabilise growth in 10 sectors, including auto and steel, as they face difficulties such as insufficient demand and declining revenues.

BASE METALS

In base metal counter, Copper can trade on negative path as it can move in range of 716-725. In terms of macroeconomics, US retail sales for June recorded a growth rate of 0.2%, marking the third consecutive month of growth. However, it fell below the expected growth rate of 0.5%. The market expects the Federal Reserve to raise interest rates by 25 basis points next week, but the rate decision is still pending. Zinc may remain on sideways path as it can move in range of 210-216.  Aluminum can move in range of 194-204. The cost of aluminum rebounded under the drive of alumina, which brought support to the aluminum price. China aluminum supply is still high, and the demand is poor. The hot weather in the southwest caused the market to worry about the power supply in the area.

ENERGY: Crude oil may trade witness further buying as it may move in range of 6120-6260. Global oil prices edged down on Wednesday, after opening higher at the start of Asian trade, as markets weighed U.S. demand concerns against China’s pledge to support economic growth, tighter Russian supply and declining U.S. inventories. With the Fed likely to raise interest rates for the last time in July, concerns about U.S. demand that will limit oil price gains are likely to remain. However, on the positive front, China’s top economic planner pledged on Tuesday that it would roll out policies to “restore and expand” consumption in the world’s second-largest economy, which could boost oil demand, as consumers’ purchasing power remained weak. On the supply side, Russia will reduce its oil exports by 2.1 million metric tons in the third quarter in line with planned voluntary export cuts of 500,000 barrels per day in August, according to the energy ministry. Natural gas prices may trade on volatile path in range of 210-220.

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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