MCX Copper likely to trade in a range between 444.8-457.8
Natural Gas market under short covering; Support seen at 233.5
Crude Oil market iunder fresh buying; Support seen at 5070
MCX Nickel under short covering; Support seen at 906.7
MCX Aluminium under fresh selling; Resistance seen at 149.2
Technically Zinc market is under long liquidation as market has witnessed drop in open interest by -18.06% to settle at 5262 while prices down 3.75 rupees.
Now MCX Zinc is getting support at 194.9 and below same could see a test of 193.1 levels and resistance is now likely to be seen at 199.7, a move above could see prices testing 202.7.
Zinc on MCX settled down -1.87% at 196.6 as pressure seen after Zinc stocks on SfHE jump 23 percent over the last week. Slower downstream demand and greater supplies of zinc concentrate and refined zinc are likely to extend the weak trend of zinc prices in 2019.
Capacity resumption at several mines started to lower zinc prices from the start of 2018, after prices surged for two years. China’s economic growth cooled to its weakest pace since the global financial crisis in the third quarter, raising pressure on Beijing to step up policy support as a years-long campaign to tackle debt risks and the trade war with the United States began to bite.
Chinese authorities are trying to navigate through numerous challenges, as the trade war fears have sparked a blistering selloff in domestic stock markets and a steep decline in the value of the yuan versus the dollar, heightening worries about the growth outlook.
The economy grew 6.5 percent in the third quarter from a year earlier, slower than 6.7 percent in the second quarter, the National Bureau of Statistics said. China’s industrial output grew 5.8 percent in September from a year earlier, missing expectations, while fixed-asset investment growth rose to 5.4 percent in the first nine months, above forecasts, data showed.
Investment growth had been expected to hold at 5.3 percent in the first nine months of the year, matching a record low growth rate in January-August.
–Zinc trading range for the day is 193.1-202.7.
–Zinc prices ended with losses as pressure seen after Zinc stocks on SHFE jump 23 percent over the last week.
–Zinc stocks across Shanghai, Tianjin, Guangdong shrank 1,900 mt from Monday Oct 15 to stand at 156,600 mt.
–On-warrant LME zinc stocks, tumbled 23 percent to 105,400 tonnes, the lowest since February.
Courtesy: Kedia Commodities