Buy MCX Crude Oil at Rs 4980: Dani Commodities

Dani Commodities has come out with its report on Crude Oil. According to the research firm, one can buy MCX Crude at Rs 4980 with stoploss of Rs 4960 for a target of Rs 5010.

Crude oil futures dropped in the Asia electronic session today as the investors booked some profits after the commodity surged more than 1 % yesterday night. Oil futures climbed more than 1% Thursday to settle at their highest level of the month, as weakness in the dollar, easing worries over the euro zone and better-than-expected U.S. data combined to lift the outlook for energy demand. Crude oil for April delivery is trading down 24 cents at $ 91.32 per barrel on the New York Mercantile Exchange.

Yesterday, it gained $1.13, or 1.3%, to settle at $91.56 a barrel, climbing back from Wednesday’s 39-cent loss. That was the highest close for a front-month contract since Feb. 28. Strength in the euro in the wake of policy decisions by the Bank of England and European Central Bank and remarks from the ECB’s president on the euro zone helped feed a decline in the U.S. dollar.

The ECB kept rates unchanged at 0.75% and the BOE stood pat at 0.5%, making no changes to its quantitative-easing program. In a news conference, Draghi played down the threat to euro-zone stability posed by Italy’s inconclusive election results. That, in turn, helped boost the view for energy demand in the region. The death of Venezuelan President Hugo Chávez on Tuesday, meanwhile, has had little direct impact on the oil market, though some analysts say that in the long term, the nation’s oil market may benefit from a change in government.

MCX Crude Oil: Buy at Rs 4980, SL-Rs 4960, target-Rs 5010.

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