MCX CPO March has support at Rs 455/10kg: IIFL

IIFL has come out with its report on global commodity update. According to the research firm, MCX CPO March prices has support at Rs 455/10kg and resistance at Rs 465/10kg.

Precious metals
COMEX Gold prices have scaled back from the high of US$1,614/ounce, as a resolution on Cyprus bailout would again shift investor preference towards riskier assets. Cyprus and its institutional lenders have reached a bailout deal, which would provide the debt ridden nation much needed funds to shore up its struggling banks and effectively avert its exit from the euro zone. The agreement includes closure of the Laiki Bank and imposing a 40% haircut on Bank of Cyprus depositors holding more than 100,000 euros in their accounts. MCX Gold (April)
Price indication: Prices have support at Rs 29,500/10gms and resistance at Rs30,000/10gms. Base metals
LME base metals are trading steady as short covering at lower levels has lifted the prices. Traders have got some respite as bailout deal for Cyprus has mitigated the fear of debt contagion in Euro zone. However, the upside in prices remains limited, considering the fact the fact that are no strong signs of recovery in Chinese demand. In addition, concerns regarding newly proposed restrictions on Chinese housing markets continue to haunt the investors. MCX Copper (April): Price indication: Prices have support at Rs410/kg and resistance at Rs422/kg. Energy
Crude oil futures are trading marginally higher, garnering strength from the steady tone in the broader markets. However, prices have not been able to sustain above US$94.5/bbl during the past few weeks, as slowdown concerns in Europe and China is effectively negating the bullish prop provided by US macroeconomic developments. Meanwhile, Brent's premium to WTI crude oil has narrowed sharply on account of rising supplies from North Sea. MCX Crude (April)
Price indication: Prices have support at Rs5,000/bbl and resistance at Rs5,160/bbl Oilseeds
Malaysian palm oil futures shed recent gains taking cues from weak exports from Malaysia. According to Intertek, exports of palm oil from Malaysia observed a drop by 7.5% to 1.07mn tons during March 1-25. Exports have fallen as the inventories have declined due to seasonal factors. Palm oil stocks in Malaysia have fallen to 2.44mn tons in February from the peak of 2.63mn tons made in December. MCX CPO (March)
Price indication: Prices have support at Rs455/10kg and resistance at Rs465/10kg. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. To read the full report click on the attachment

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