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Wednesday, May 31, 2023

MCX Zinc under fresh buying; Support seen at 196.3

MCX Natural Gas under fresh buying; Support seen at 201.5

MCX Copper under fresh buying; Resistance seen at 462.3

MCX Nickel under fresh buying; Support seen at 951.4

MCX Aluminium likely to trade between 144.3-147.7 levels

MCX Mentha Oil under fresh selling; Resistance seen at 1624.8

Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 19.53% to settled at 4903 while prices up 2.15 rupees.

Now MCX Zinc is getting support at 196.3 and below same could see a test of 194.1 level, And resistance is now likely to be seen at 199.7, a move above could see prices testing 200.9.

Zinc on MCX settled up 1.1% at 198.40 gained on fresh buying while prices recovered from the day’s low tracking LME  zinc prices which rose 1.1 per cent to settled at $US2,780 despite China cut its economic growth target but pledged more stimulus measures.

Also support seen on falling LME zinc inventories that approached record lows grew concerns over supply, and buoyed LME zinc to a high of $2,784.5/mt. Last night base metals ended mix as nickel jumped 2.27%, zinc increased over 1.10% and copper gained 0.34%, while lead and aluminium edged down.

The US dollar increased to a two-week high as unexpectedly strong data on US services industries and new home sales allayed some worries about the US economy. Sentiments improved after the government vowed to cut taxes and expand infrastructure investment to support the economy.

Also China’s service sector grew at the slowest pace in February, according to a private indicator on Tuesday. This was consistent with an official gauge that pointed to growing headwinds faced by service providers.

The Caixin China services purchasing managers’ index (PMI) declined to 51.1 in February from January’s 53.6. Now a day ahead China will release data on its foreign exchange reserve for February, and the US will release its ADP payroll data of last month, its trade account for December.

Trading Ideas:
–Zinc trading range for the day is 194.1-200.9.
–Zinc prices ended with gains on concern about shortages after inventories slid.
–Social inventories of refined zinc in China continued their growth, suggesting that consumption has yet to substantially pick up.
–China 2019 gov’t work report: it will further cut targeted RRR on small & medium banks.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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