Sugar futures are likely to extend its downside on reports that Government has decided not to increase sugar import duty on both raw as well as white sugar for now. At present, cheaper sugar was finding its way into the country from Brazil and Pakistan. There are reports that about 2.2 lakh tonnes of sugar imported from Brazil have been imported into the eastern parts of the country. Wheat futures are likely to maintain the upside on the expectations of higher exports. Pepper futures (Mar) is likely to find support above 37200 levels. The squeeze in supply is attributed to the dry spell prevailing in the growing areas which some growers claimed to have spoiled the vines. We suggest a sell in NCDEX Pepper.
Crude oil may remain on weaker side in range of 5040-5100 while natural gas can head higher due to weather concerns and can test 180 in MCX. There will be lot of volatility as February contract expires today. West Texas Intermediate oil traded near the highest level in two days before international talks with Iran on its nuclear program.
Base metals can trade with positive path due to short covering after last week sharp fall. Copper may trade in range of 420-427 in MCX while zinc may trade in range of 111-113 and Lead in range of 124-126. Nickel may trade in range of 910-925 in MCX and Aluminum can trade in range of 108-110
