MCX Nickel may trade between 887-980.8 levels
MCX Aluminium under short covering; Support seen at 135.5
MCX Mentha Oil under short covering; Resistance Seen at 1609
NCDEX Chana under short covering
MCX Cotton under fresh selling; Support seen at 20460
Technically MCX Zinc market is getting support at 200.5 and below same could see a test of 198.5 level, And resistance is now likely to be seen at 203.6, a move above could see prices testing 204.7.
Zinc on MCX settled up 1.45% at 202.40 gained on fresh buying tracking LME Zinc prices which climbed to a seven-month high on Monday, helped by supply shortages due to declining inventories, environmental constraints and delays in the production of new capacity in China, the largest producer.
The London Metal Exchange’s three-month zinc closed 0.8% higher at $2,800 a tonne, hitting a high of $2,801 per tonne earlier on July 4. The metal market is expected to be light this week due to the Chinese Lunar New Year holiday. China accounts for about half of the global demand for industrial metals.
Also US President Trump said last week that he will soon meet with Chinese President Xi Jinping in an effort to reach a comprehensive trade agreement. Both Trump and the US trade negotiators said that the two-day talks held last week have made substantial progress.
Yesterday Dollar gained with upbeat U.S. jobs data and optimism about U.S.-China trade talks. Even as recent data from China suggested that the world’s second largest economy is slowing down, a bigger than expected jump in U.S. non-farm payroll employment and encouraging data on U.S. manufacturing activity eased concerns about U.S. economic growth.
Although both U.S. and China claimed discussions between the two countries were progressing well, negotiations between them ended without concrete results last week.
The focus now will be on the next round of talks between officials of the two countries. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to China in mid-February for the next round of talks, according to Xinhua.
–Zinc trading range for the day is 198.5-204.7.
–Zinc prices gained as social inventories of zinc accumulated by a slower pace week on week, compared with the same period a year ago.
–The official PMI for January ticked up fractionally to 49.5, but remained below the 50-point level that separates growth from contraction on a monthly basis.
–Trading was dampened by the week-long Lunar New Year holiday which has closed markets in China.
Courtesy: Kedia Commodities