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Thursday, July 7, 2022

MCX Aluminium likely to move in a range of 130.5-132.9

MCX Nickel likely to move in a range of 892.8-927.6

MCX Mentha Oil likely to trade in a range of 1623-1682

NCDEX Chana under long liquidation; Support seen at 4231

MCX Cotton under long liquidation

NCDEX Jeera under long liquidation

Technically MCX Aluminium market is getting support at 131.3 and below same could see a test of 130.5 level, And resistance is now likely to be seen at 132.5, a move above could see prices testing 132.9.

Aluminium on MCX settled up 0.92% at 132.05 gained on short covering regained its majority of losses from the end of the CNY holiday despite much improvement in fundamentals. Support is seen in hopes of a trade deal between China and the United States.

As U.S. President Donald Trump said talks with China, currently taking place in Washington, were going well and suggested he was open to pushing off the deadline to complete negotiations, saying March 1 was not a “magical” date.

Tariffs on $200 billion worth of Chinese imports are scheduled to rise to 25 per cent from 10 per cent by March 1 if there is no deal, which analysts expect would weigh on metals demand and prices. In Base metals, last night base metals traded higher across the board.

Nickel increased by 1.77%, copper climbed 1.22%, zinc gained by 1.20% while lead and aluminium advanced 0.92%. The US dollar index rose on Wednesday as the Fed’s latest policy meeting appeared more hawkish than the market had expected.

The Federal Reserve said the US economy and its labour market remained strong, growing some expectations of at least one more interest rate hike this year. The Fed also emphasised the need for patience over monetary policy.

Now a day ahead economic data slated for release today include Germany’s CPI for January, US durable goods orders for December, existing home sales for January as well as weekly unemployment claims and the EIA weekly crude stocks report.

Markit February manufacturing purchasing managers’ indexes (PMI) for Germany, the Eurozone and the US are also due today.

Trading Ideas:
–Aluminium trading range for the day is 130.5-132.9.
–Aluminium gained as investors dared to hope for both progress at Sino-U.S. trade talks in Washington this week and more policy stimulus from major central banks.
–Chinese banks received around 2.8 trillion yuan in new loans in January according to the People’s Bank of China, over double December’s 1.08 trillion yuan.
–The US should respect China’s right to develop and become prosperous, reiterating that the country’s doors to the outside world would open wider.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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