15.3 C
New York
Wednesday, October 27, 2021

Aluminium market under fresh buying; Support seen at 138.3

Mentha Oil market under long liquidation; Resistance seen at 1537.5

Nickel market under short covering; Support seen at 918

MCX Zinc likely to trade between 169.1-187.5 levels

MCX Copper likely to trade in a range between 411.6-426

Natural Gas market under fresh selling; Support seen at 186.3

Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 4.13% to settled at 3155, now Aluminium is getting support at 138.3 and below same could see a test of 137.4 level, And resistance is now likely to be seen at 139.9, a move above could see prices testing 140.6.

Aluminium on MCX settled up 0.22% at 139.25 gained after China’s aluminium producers are responding to tighter supply conditions by boosting output, data showed. China’s June output rose by 0.8 percent to 2.83 million tonnes, which on daily basis was the highest since June 2017, according to Reuters’ calculations based on official data.

While China’s primary aluminium social inventory extended its weekend gains this week as consumption weakened on a seasonal lull and as deliveries arrived at the warehouses.

The inventory across eight major consuming areas, including SHFE warrants, increased by 22,000 mt from last Thursday to stand at 1.82 million mt as of July 19.  Last night the US dollar index inched down from a three-week high but still stood above the 95 level and closed at 95.09. Base metals mostly consolidated at low levels.

LME copper and lead touched their one-year lows, and lead closed slightly lower. However, zinc jumped nearly 4.5%, the biggest one-day gain over a year, due to declining inventory and tight supply. Other base metals edged up.

From data point the US housing starts tumbled 12.3% to a seasonally adjusted annual rate of 1.17 million units in June, the lowest level since September 2017. The month-on-month drop marked the sharpest since November 2016, indicating that tight supply is dealing a blow to the housing market.

Now day aheadtrader will eye on the US jobless claims for the week ended July 14 will be one of the key factors to watch today.      

Trading Ideas:
–Aluminium trading range for the day is 137.4-140.6.
–Aluminium settled flat as the market was cautious as the US-China trade tensions remained in the spotlight.
–China’s aluminium producers are responding to tighter supply conditions by boosting output, data showed.
–China’s June output rose by 0.8 percent to 2.83 million tonnes, which on daily basis was the highest since June 2017.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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