MCX Copper likely to trade in range between 439.7-454.1
Natural Gas market under fresh selling; Support seen at 231.6
MCX Nickel likely to move in a range of 847.8-872.6
MCX Aluminium may trade between 142.7-146.9 levels
MCX Menthol Oil under fresh buying; Support seen at 1785.6
Technically Zinc market is getting support at 195.1 and below same could see a test of 194.1 levels and resistance is now likely to be seen at 198, a move above could see prices testing 199.9.
Zinc on MCX settled down -1.13% at 196.20 fell on a stronger dollar and a report that the United States is planning tariffs on an additional $257 billion of Chinese goods. Prices have been weighed down by tit-for-tat tariffs imposed by the world’s top two economies this year amid concerns the trade row will hurt demand for industrial metals.
Last night the dollar edged higher against the euro on Monday, on news German Chancellor Angela Merkel would not seek re-election as head of her Christian Democratic Union party. Both LME and SHFE base metals ended in negative territory across the board overnight except for SHFE copper who stayed flat.
LME lead and zinc dropped some 1.8%, aluminium slid 1.4%, nickel fell 1.2%, copper slipped 0.9% and tin lost 0.75%. SHFE zinc sank close to 0.9%, nickel decreased over 0.6%, aluminium went down more than 0.4%, tin declined 0.35% and lead skidded about 0.2%.
While from US side US consumer spending rose for a seventh straight month in September, but moderate growth in wages limited income to its smallest gain in more than a year.
While Personal income rose 0.2% last month, the smallest increase since June 2017, after it gained 0.4% in August. Now a day ahead Economic data slated for release today include Germany’s unemployment rates and consumer inflation for October, the eurozone’s business climate and consumer confidence for October as well as gross domestic product for the third quarter and the Conference Board’s US-based consumer confidence index for October.
–Zinc trading range for the day is 194.1-199.9.
–Zinc prices dropped as concerns over the impact of a U.S.-China trade row on demand for industrial metals returned to focus.
–Profit growth at China’s industrial firms slowed for a fifth consecutive month in September as sales of raw materials and manufactured goods ebbed further.
–The slowdown was in line with data last week that showed September’s factory output grew at the weakest pace since February 2016.
Courtesy: Kedia Commodities