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Monday, July 4, 2022

MCX Aluminium under fresh selling; Resistance seen at 141.8

Natural gas market under fresh selling; Support seen at 188.5

MCX Zinc under fresh selling; Resistance seen at 173.5

Crude Oil market under long liquidation; Support seen at 4590

MCX Nickel under fresh selling; Support seen at 898.8

Silver market under fresh selling; Support seen at 37820

Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 11% to settled at 3008 while prices down 2.1 rupees.

Now MCX Aluminium is getting support at 139.4 and below same could see a test of 138.4 level, And resistance is now likely to be seen at 141.8, a move above could see prices testing 143.2.

Aluminium on MCX settled down 1.48% at 140.25 on fresh selling tracking weakness from LME Aluminium fell 1.4 percent to end at $2,052 a tonne after the U.S. Treasury said it had extended a deadline for investors to divest holdings in Russia’s Rusal , which has been hit by U.S. sanctions, to Oct. 23 from Aug. 5.

Both LME and SHFE base metals fell across the board overnight. Pressure seen after China’s Caixin manufacturing purchasing managers’ index (PMI) declined to 50.8 in July from June’s 51.0, lower than the expected 51.

A reading above 50 indicates expansion, while a reading below that signals contraction. The country’s economic activity fell to an eight-month low for July as new export orders fell at the steepest pace in more than two years.

Manufacturing output and new business growth slowed in July from June, which drove companies to continue to cut employment. Last night the US dollar index inched up to 94.7 overnight after the Federal Reserve concluded a two-day meeting on monetary policy and kept interest rates unchanged.

The decision on interest rates was widely expected, but the central bank upgraded its view on the economy, calling it “strong”. Now day ahead key factors to watch today will be US initial jobless claims last week, factory orders and durable goods orders in June.

Trading Ideas:
–Aluminium trading range for the day is 138.4-143.2.
–Aluminium dropped after U.S. Treasury said it had extended a deadline for investors to divest holdings in Russia’s Rusal, which has been hit by U.S. sanctions.
–Some 30,000 mt of primary aluminium consumption is expected to be affected in Gongyi city of Henan, as local downstream processors were required to stagger suspensions.
–Slower consumption depressed local aluminium prices and the price spread between spot aluminium ingot in Gongyi and Shanghai widened to 100 yuan/mt.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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