MCX Nickel may trade between 955.3-984.5 levels
MCX Mentha Oil likely to trade in a range of 1430.4-1511.4
Zinc market under fresh selling; Support seen at 178.8
MCX Copper under fresh selling; Support seen at 429.9
Natural Gas market under fresh selling; Resistance seen at 194.3
Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 1.54% to settled at 3236 while prices down 1.35 rupees.
Now MCX Aluminium is getting support at 142.2 and below same could see a test of 141 level, And resistance is now likely to be seen at 145.4, a move above could see prices testing 147.4.
Aluminium on MCX settled down 0.93% at 143.25 tracking weakness from LME aluminium which fell 0.8 percent at $2,104 a tonne as anticipation of a rebound in aluminium inventory grows amid low season of demand and gradually growing newly-commissioned capacity.
Falling stocks of aluminium, down at 1.116 million tonnes from 2.297 million tonnes in January last year, have created concern about availability on the LME market. This has seen the premium for the cash over the three-month contract rise to $24.50 a tonne from a discount early in June.
This premium or backwardation is expected to attract more aluminium to the LME market. While US President Donald Trump has rattled the world trade order this year by seeking to renegotiate the terms of some of the US trading relationships, in particular with China.
He has imposed tariffs on some imports including steel, raising fears of a global trade war. Last night the US dollar index gained 0.04% to close at 94.09 as the euro weakened. The US President Donald Trump’s push for allies of the NATO to increase military spending added to market worries.
Base metals fell for the most part, except for nickel. LME zinc led the losses and closed over 2.2% lower. It touched the lowest level since June 21 last year amid rising supply. From data point China’s CPI rose 1.9% year on year in June, in line with expectations and up from May’s gain of 1.8%.
–Aluminium trading range for the day is 141-147.4.
–Aluminium dropped as pressure seen after rise in LME stocks despite amid expectations for a decline in output.
–Chinese alumina producer Luoyang Heungkong Wanji Aluminium Co Ltd said it has cut output of alumina by 680,000 tonnes on an annual basis.
–United Company Rusal, in May increased aluminium exports to 197,000 tonnes, up almost threefold from April.
Courtesy: Kedia Commodities