MCX Nickel may trade between 955.3-984.5 levels
MCX Aluminium under fresh selling; Support seen at 142.2
MCX Mentha Oil likely to trade in a range of 1430.4-1511.4
MCX Copper under fresh selling; Support seen at 429.9
Natural Gas market under fresh selling; Resistance seen at 194.3
Technically Zinc market is under fresh selling and prices getting support at 178.8 and below same could see a test of 176.1 levels and resistance is now likely to be seen at 185.5, a move above could see prices testing 189.5.
Zinc on MCX settled down 2.26% at 181.35 fell to their lowest in more than a year in yesterday’s session as expectations of rising supplies and a narrowing deficit sparked a sell-off that accelerated after prices fell below key technical support levels.
Benchmark zinc on the London Metal Exchange was down 2.5 percent at $2,636 a tonne at 1049 GMT. Prices of the metal used to galvanise steel earlier fell to $2,624.50, the lowest since June 21 last year. While Shortages saw zinc prices rise 60 and 29 percent in 2016 and 2017 respectively.
Losses so far this year total 20 percent. The concentrate market will become better supplied as this year progresses and new mine and reactivated supply comes on stream, while section 232 tariffs on steel products and escalating trade tensions have given rise to risk aversion. 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%. The PPI rose 4.7% in June from a year ago, accelerating from May’s increase of 4.1% and marking the highest growth rate this year.
–Zinc trading range for the day is 176.1-189.5.
–Zinc prices fell to their lowest in more than a year in yesterdays session as rising supplies and a narrowing deficit sparked a sell-off.
–The global market balance in zinc will be much less tight this year due to mine openings and expansions-ILZSG said.
–Many funds with bets on higher zinc prices were cutting their positions, which had helped fuel downward momentum.
Courtesy: Kedia Commodities