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Sunday, July 3, 2022

MCX Aluminium may trade between 225-235.8 levels

Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 19.57% to settled at 2585 while prices down 4.7 rupees.

Now MCX Aluminium is getting support at 227.3 and below same could see a test of 225 levels, and resistance is now likely to be seen at 232.7, a move above could see prices testing 235.8.

Aluminium yesterday settled down by 2.01% at 229.5 as domestic social inventory of aluminium increased from 11,000 mt last Thursday to 968,000 mt on October 25.

Global primary aluminium output rose in September to 5.508 million tonnes, up 1.77% year on year, data from the International Aluminium Institute (IAI) showed. Estimated Chinese production was 3.183 million tonnes in September, the IAI said.

The People’s Bank of China (PBOC) injected a total CNY 200 billion of seven-day reverse repos at an interest rate of 2.2 percent on October 26th, the same as in the previous day, and marking the second straight day of injections in the financial system.

The central bank said, the move aims to countering factors including tax payments and government bond issuance in order to keep banking system liquidity reasonably ample. On the macro front, former US Fed Chair Greenspan said the inflation rate will stay above the Fed’s target of 2% for a continuous period of time.

And the leading Wall Street banks are betting on an early interest rate kike of the Fed and Bank of America’s raising its yield. On the supply side, a new aluminium plant has encountered power rationing and the transportation of aluminium ingots and rods produced in northwest China has been hindered.

Trading Ideas:
–Aluminium trading range for the day is 225-235.8.
–Aluminium prices dropped as domestic social inventory of aluminium increased from 11,000 mt to 968,000 mt.
–Global aluminium output rises 1.77% y/y to 5.5 mln T in Sept – IAI.
–PBoC injects CNY 200 billion into market for 2nd Day.

Courtesy: Kedia Commodities

Source: Comodity Online

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