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Monday, August 15, 2022

Zinc market under fresh selling; Support seen at 171.5

MCX Nickel may trade between 881.3-914.3 levels

MCX Aluminium likely to move in a range of 144.3-154.5

MCX Mentha Oil may trade between 1776.1-1832.5 levels

MCX Cotton under fresh buying; Support seen at 23010

MCX Cardamom under fresh buying; Resistance seen at 1478.4

Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 17.03% to settled at 6289 while prices down -1.15 rupees.

Now MCX Zinc is getting support at 171.5 and below same could see a test of 170.2 levels and resistance is now likely to be seen at 175, a move above could see prices testing 177.2.

Zinc on MCX settled down -0.66% at 172.70 fell after U.S. President Donald Trump threatened to impose tariffs on virtually all Chinese imports into the United States, escalating the trade dispute and stoking fears of weaker demand for industrial metals.

Also pressure seen as Zinc social inventories across Shanghai, Tianjin and Guangdong grew over the weekend and this is likely to weigh on zinc prices. Zinc prices got some support as Indian Rupee crashed below the 72-mark to end at a life-low of 72.45 against the US dollar on growing fears of contagion from an emerging-market rout and escalation of a global trade war.

On the trade front, the U.S. President Donald Trump threatened on Friday that his administration would impose new tariffs on $267 billion of Chinese goods. Trump also called on Apple to move production from China to the United States to avoid suffering the consequences of his trade war with Beijing.

Trump reportedly told a columnist for The Wall Street Journal last week that he was “still bothered by the terms of U.S. trade with Japan.” Now market participants should monitor data including China’s social financing and its M2 money supply for August, the eurozone ZEW economic confidence in September, as well as the US warehouse inventories for July.

Trading Ideas:
–Zinc trading range for the day is 170.2-177.2.
–Zinc slid as an intensifying trade dispute between the United States and China raised concerns over demand for industrial metals.
–China’s trade surplus with the United States widened to a record even as the country’s export growth slowed slightly.
–China’s producer inflation cooled in August amid softening domestic demand, pointing to a steadily slowing growth.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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