BULLIONS

Bullions counter may trade on mixed path as gold can move in range of 61750-62100 while silver also can move in range of 70700-72300. The US Dollar struggles to capitalize on the overnight bounce from over a one-week low and remains below its highest level since December 13 touched on Tuesday. This, along with the risk of a further escalation of military action in the Middle East, turn out to be key factors lending support to the safe-haven precious metal. Meanwhile, the upbeat release of the flash US PMI prints on Wednesday reaffirms the view that the economy is in good shape and forces investors to further scale back their expectations for an early interest rate cut by the Federal Reserve (Fed). The flash US Manufacturing PMI rebounded from 47.9 to a 15-month high of 50.3 in January, while the gauge for the services sector climbed to 52.9, or the highest reading since last June.

BASE METALS

In base metal counter, Copper can move in range of 723-735. On the macro side, the People’s Bank of China decided to lower the deposit reserve ratio of financial institutions, support agriculture and small businesses, re-lending, and rediscount rates. US Treasury bond yields continued to rise, cooling down market expectations for an interest rate cut by the Federal Reserve in March. An industry survey shows that the interest rate cut is unlikely to happen until June. The domestic economy is showing a recovery trend, and macroeconomic policies are expected to strengthen counter-cyclical and inter-cyclical adjustments. The timing and scale of this RRR cut exceeded market expectations, reflecting the People’s Bank of China’s support for the real economy recovery. Aluminium may trade on upside path in range of 198-204.

ENERGY

Crude oil may trade on mixed path as it may move in range of 6200-6350. Oil prices rose on Thursday after data showed U.S. crude stockpiles fell more than expected last week, while the Chinese central bank’s cut in banks’ reserve ratio reinforced hopes of more stimulus measures and economic recovery. U.S. crude stockpiles tumbled by 9.2 million barrels last week, the Energy Information Administration said. U.S. crude output fell from a record-tying 13.3 million barrels per day (bpd) two weeks ago to a five-month low of 12.3 bpd last week after oil wells froze during an Arctic freeze. Oil prices also drew support from hopes for China’s economic recovery. China also said on Wednesday it is widening the uses for commercial property lending by banks in its latest effort to ease a liquidity crunch facing troubled real estate firms. Natural gas prices may witness lower level buying as it may move in range of 185-195.

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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