Mentha Oil market under long liquidation; Resistance seen at 1537.5
Aluminium market under fresh buying; Support seen at 138.3
Nickel market under short covering; Support seen at 918
MCX Copper likely to trade in a range between 411.6-426
Natural Gas market under fresh selling; Support seen at 186.3
Technically MCX Zinc is getting support at 175.1 and below same could see a test of 169.1 levels and resistance is now likely to be seen at 184.3, a move above could see prices testing 187.5.
Zinc on MCX settled up 4.71% at 181.15 gained on short covering tracking weakness from LME Zinc prices which pulled away from one-year lows hit earlier in the week and the metal recorded its first daily jump in seven trading days in Shanghai, tracking a rise on the London Metal Exchange (LME) amid plunging inventories.
Support also seen after Shanghai Futures Exchange zinc stocks dropped by 16,919 tonnes to 58,016 tonnes last week, their lowest since February 2008, while LME zinc stocks have fallen for six straight days.
Zinc prices is down 10.1 percent so far this month in Shanghai and 11.3 percent in London on concerns about oversupply, but it had been boosted by positive data from top metals consumer China on Tuesday. in a note, adding that zinc was “one of the metals most leveraged to the housing and construction sectors.
Meanwhile expectations for a rise in zinc concentrate supplies in coming years have driven down the metal price in London to one-year lows, but smelting capacity constraints suggest the sell-off is premature.
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. Now day ahead trader will eye on the US jobless claims for the week ended July 14 will be one of the key factors to watch today.
–Zinc trading range for the day is 169.1-187.5.
–Zinc chalked up its largest daily gain in a year, recovering from this week’s one-year low on bargain hunting and falling inventories.
–Prices also found support after the Chinese house price data reading rose at its fastest pace in 21 months.
–SHFE zinc stocks dropped by 16,919 tonnes to 58,016 tonnes last week, their lowest since February 2008, while LME zinc stocks have fallen for six straight days.
Courtesy: Kedia Commodities