Commodity outlook: Energy counters jump; here's how others may fare

Energy counters rallied on Tuesday as crude oil and natural gas saw short covering even as demand continued to plummet across the world due to lockdowns.

Crude oil futures gained 2.6 per cent to Rs 1,658, while natural gas jumped 4.55 per cent to Rs 131. Meanwhile, gold slipped 0.04 per cent to Rs 43,362.

"Increased anxiety on risky asset prompted investors to seek shelter in safe havens like gold. Meanwhile, a strong dollar and moderate physical activities due to government tightened lockdowns likely to limit major buying interest in the commodity," said Hareesh V, Head-Commodity Research at Geojit Financial Services.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counters can trade mixed. Gold can move towards Rs 43,100 while taking resistance near Rs 43,500, while silver may recover towards Rs 40,500 while taking support near Rs 39,600.

Base metals: Base metals may trade with a positive bias. Copper (Apr) may recover towards Rs 376 while taking support near Rs 365. Zinc (Apr) may recover towards Rs 145 by taking support near Rs 139. Lead (Apr) may remain in range as it can face resistance near Rs 134 while taking support near Rs 130. Aluminum (Apr) may remain in range of Rs 132-135.

Energy: Crude oil may witness some short covering. It can bounce towards Rs 1,700 by taking support near Rs 1,580. Natural gas can bounce towards Rs 130 by taking support near Rs 123.

Spices: Turmeric futures (Apr) are expected to trade with an upside bias holding on the support near Rs 5,750, while the upside may remain capped near Rs 5,900. Jeera futures (Apr) are likely to consolidate and hold their gains in the range of Rs 13,900-14,400. Coriander futures (April) would probably go down further towards Rs 5,600-5,500.

Oilseeds: Soybean futures (April) are expected to trade with a positive bias in the range of Rs 3,765-3,875. Mustard futures (April) are expected to remain stable in the range of Rs 4,100-4,200. Soy oil futures (April) would probably continue to extend its upside moves towards Rs 845- 855. While, CPO futures (Apr) may maintain its upbeat moves to test Rs 675-680.

Other commodities: Cotton futures (Apr) are likely to trade with a downside bias towards Rs 15,500 on the bearish footsteps of the overseas market. Castor seed futures (April) might witness lower level buying near Rs 4,000 and later during the week may rise to test Rs 4,150-4,250. Mentha oil (April) are expected to take support near Rs 1,080, while the upside may get extended towards Rs 1,120.