Mentha Oil market under short covering; Support seen at 1539.8
MCX Aluminium may trade in a range between 136.7-140.7
MCX Zinc likely to trade between 170.8-185.4 levels
Copper market under fresh selling; Support seen at 408.8
Natural Gas likely to trade between 185-194.8 levels
Technically market is getting support at 910.3 and below same could see a test of 897.3 levels and resistance is now likely to be seen at 933.3, a move above could see prices testing 943.3.
Nickel on MCX settled down 1.14% at 923.30 on concerns that a trade row between China and the United States will weaken demand for industrial metals. Nickel, the top performing industrial metal this year, is expected to recover recent losses in the second half of the year, as per Reuters poll showed.
Trader covered their short latter in the session after Chinese policymakers are pumping more liquidity into the financial system and channelling credit to small and medium-sized firms, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war.
A sell-off that has hammered the price of industrial metals continued yesterday as fears over slowing global growth and the trade spat between the US and China rattled commodity markets.
Lead, nickel and zinc tumbled as much as 5 per cent while copper crashed through $6,000 a tonne for the first time in a year as macro funds increased bearish bets and the US dollar strengthened, which makes commodities more expensive for holders of other currencies.
Last night the US dollar index fell from one year’s high and closed at 95.09, slightly up from Wednesday. From data points the US initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 207,000 for the week ended July 14, the lowest reading since early December 1969.
While today day ahead Light economic data are expected today as the market watches out for further movement in metals prices.
–Nickel trading range for the day is 897.3-943.3.
–Nickel dropped as prices remained under pressure amid fears that an escalating trade spat between US and China could hit demand, particularly if Chinese growth is affected.
–Vale Indonesia Q2 nickel in matte production at 18,893 tonnes versus 20,107 tonnes in Q2 2017.
–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.
Courtesy: Kedia Commodities