BULLIONS

Bullions counter may remain on firm path due to safe haven buying amid banking crises in US. Top central banks, faced with the risk of a fast-moving loss of confidence in the stability of the financial system, moved on Sunday to bolster the flow of cash around the world. Gold can move in range of 59000-59500 while silver also can move in range of 67800-68700. The collapse of Silicon Valley Bank in the U.S. has highlighted banks’ vulnerabilities to sharply higher rates, while a rout in Credit Suisse shares has added to the market turmoil. Meanwhile, such an unexpected price rise of the yellow metal has raised concerns among buyers. Indian consumers have started avoiding purchasing the precious metal for themselves as well as for presenting it to relatives in marriages.

BASE METALS

In base metal counter, Copper can trade on weaker path as it can move in range of 747-760. On the macro front, the stock prices of Credit Suisse in Europe and the First Republic Bank of the United States fell further. The market still has concerns about the banking crisis and is more worried about an economic recession caused by the tightening monetary policy.  Zinc may trade in red as it can move in range of 250-258. Aluminum can trade on subdued path as it can move in range of 200-206. Macro factors dominated the movement of aluminium prices last week. Recent strong US economic data raised the risk of the Fed raising interest rates, but fears of US interest rate hike eased following the collapse of Silicon Valley Bank, sending the US dollar index lower.

ENERGY: Crude oil may further slip lower as it can move in range of 5400-5600. Oil prices suffered their biggest weekly loss in months as UBS struck a deal to buy Credit Suisse and some of the world’s largest central banks sought to reassure and stabilise global financial markets. Investors are pricing a 60% probability that the Fed will raise rates by 25 basis points on Wednesday, but some executives are calling on the central bank to pause its monetary policy tightening for now but be ready to resume raising rates later. A slowdown in interest rate hikes could depress the greenback, making dollar-denominated commodities more affordable for holders of other currencies. Natural gas prices can remain in red as it can move in range of 190-205.

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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