Support for MCX Crude December at Rs 4910: Kotak Commodity

Kotak Commodity has come out with its report on Crude Oil. As per the research firm Support for MCX Crude Dec. contract is seen at Rs.4910 while Resistance is seen at Rs.5085.

NYMEX crude trades marginally higher around $94/bbl Friday after a 1.1% slide yesterday which marked its second consecutive decline. Crude rose as high as $95.99/bbl in intraday trade yesterday but failed to sustain the gain and hit an intraday low of $93.31/bbl, the lowest level seen since Nov.7. Crude oil and other commodities witnessed a sharp sell-off earlier this week amid dwindling market confidence about major economies and sharp rally in US dollar. The sell-off came also amid some position squaring ahead of year end. While US dollar shed some of its gains yesterday and US equity markets noted some gains, commodities continued to remain under pressure. Trade volumes will drop further in next few days due to holiday and we could see increase in price volatility. WTI crude oil was also affected by spread trade. While NYMEX WTI Jan contract ended 1% lower, Brent crude Jan contract rose 7 cents to end at $105.09/bbl. The diverse movement was due to position squaring ahead of expiry of Brent Jan contract.

Outlook
Crude Oil - MCX Crude may note some decline however downside is limited. Strength in Indian rupee will weigh on domestic crude prices. NYMEX crude has however recovered from recent lows to trade near $94/bbl. Supporting prices is pause in dollar

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