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Monday, May 23, 2022

MCX Zinc may trade between 191.6-197.2 levels

MCX Nickel likely to move in a range of 895.9-940.5

Long liquidation seen in MCX Aluminium

MCX Mentha Oil likely to trade in a range of 1587.8-1663.4

NCDEX Chana under long liquidation

MCX Cotton under fresh buying; Resistance seen at 20710

Technically Zinc market is getting support at 192.7 and below same could see a test of 191.6 levels and resistance is now likely to be seen at 195.5, a move above could see prices testing 197.2.

Zinc on MCX settled down -0.41% at 193.70 dropped on long liquidation tracking weakness from LME zinc prices which edged down 0.2 per cent to $US2,719  tracking weakness from SHFE zinc stemmed its recent gains overnight as rising social inventories across Shanghai, Guangdong and Tianjin and slow consumption recovery kept buyers cautious.

Meanwhile the International Lead and Zinc Study Group (ILZSG) recently released data for 2018 showing lead and zinc posted supply deficits last year. Zinc supply fell short of demand by 384 kt in 2018, according to the ILZSG.

Zinc mine output “increased significantly” in Australia in 2018, while output jumped 5.9% in Europe, paced by higher output in Finland, Greece, Macedonia and the Russian Federation that offset declines in Poland and Sweden.

Production was also higher in Bolivia, Brazil, Cuba, Eritrea, Kazakhstan, South Africa, Turkey and the United States, according to the report. Yesterday most base metals dropped despite US dollar extended its losses as risk appetite improved after US President Donald Trump decided to extend a March 1 deadline for additional tariffs on Chinese goods, suggesting trade negotiations between the two countries have made significant progress.

Now a day ahead economic data slated for release today include Germany’s Gfk consumer confidence index for March, and February consumer confidence survey from the Conference Board. Also US Fed Chairman Jerome Powell will testify before congressional committees on Tuesday and Wednesday.

Trading Ideas:
–Zinc trading range for the day is 191.6-197.2.
–Zinc dropped as rising social inventories across Shanghai, Guangdong and Tianjin and slow consumption recovery kept buyers cautious.
–President Donald Trump said there was “a very good chance” the United States would strike a deal with China to end their trade war.
–Stocks rose 4,100 mt from Friday Feb 22 and 19,200 mt from Monday Feb 18 to stand at 212,400 mt as of Monday Feb 25.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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