Mentha Oil market under short covering; Support seen at 1539.8
MCX Aluminium may trade in a range between 136.7-140.7
MCX Nickel may trade between 897.3-943.3 levels
Copper market under fresh selling; Support seen at 408.8
Natural Gas likely to trade between 185-194.8 levels
Technically Zinc market is getting support at 174.9 and below same could see a test of 170.8 levels and resistance is now likely to be seen at 182.2, a move above could see prices testing 185.4.
Zinc on MCX settled down 1.16% at 179.05 crashed in the line of expectation tracking weakness from Three-month zinc on the LME which gave up early gains to trade sharply lower on Thursday as another broad sell-off in industrial metals took hold.
Shanghai zinc had earlier jumped by the daily limit of 6 percent to a one-week top following a report that China plans to boost liquidity in the banking sector, and was underpinned by falling inventories and a weaker yuan.
The LME sell-off that followed came as a China foreign ministry spokeswoman described as “shocking” comments from U.S. economic adviser Larry Kudlow that Chinese President Xi Jinping was “holding up” a deal to resolve a trade row between the two countries.
While the People’s Bank of China plans to introduce incentives that will boost the liquidity of commercial banks, helping them to expand lending, according to a source with direct knowledge of the matter. Some support seen from low level after the news that China’s zinc output fell 5 percent year-on-year to 475,000 tonnes in June, the National Bureau of Statistics said on Wednesday.
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.
This compared to an expected rise to 220,000, suggesting that the labour market continues to strengthen. While today day ahead Light economic data are expected today as the market watches out for further movement in metals prices.
–Zinc trading range for the day is 170.8-185.4.
–Zinc prices dropped as another broad sell-off in industrial metals took hold.
–Prices earlier seen supported amid report that China plans to boost liquidity in the banking sector, and was underpinned by falling inventories and a weaker yuan.
–China June zinc output -5 pct y/y at 475,000 tonnes, the National Bureau of Statistics said.
Courtesy: Kedia Commodities