Technically Aluminium market is under short covering as market has witnessed drop in open interest by 8.86% to settled at 2098 while prices up 1.6 rupees.
Now MCX Aluminium is getting support at 210.1 and below same could see a test of 208.6 levels, and resistance is now likely to be seen at 213.2, a move above could see prices testing 214.8.
Aluminium yesterday settled up by 0.76% at 211.45 amid production restrictions in the heating season and ahead of the Beijing Winter Olympics.
Aluminium stocks at three major Japanese ports were up 1.1% to 287,100 tonnes at the end of October from 284,000 tonnes at the end of September. On the macro front, more and more Fed officers agreed that it is justified in accelerating tapering as inflation remains high.
The sustained hawkish stance has heightened the estimate of contracting liquidity. Data showed that China’s social inventories of aluminium across eight consumption areas dropped 15,000 mt on the week to 1 million mt as of December 2, mainly contributed by Nanhai, Shanghai and Wuxi.
The inventory in Gongyi rose on the week. Activity in China’s services sector expanded at a slower pace in November amid rising inflationary pressures and continuing small-scale COVID-19 outbreaks, a private survey showed.
The Caixin/Markit services Purchasing Managers’ Index (PMI) fell to 52.1 in November from 53.8 in October, but remained above the 50-point mark that separates growth from contraction on a monthly basis.
Advisers to China’s government will recommend authorities set a 2022 economic growth target below the one set for 2021, giving policymakers more room to push structural reforms amid growing challenges to the outlook.
–Aluminium trading range for the day is 208.6-214.8.
–Aluminium remained supported amid production restrictions in the heating season and ahead of the Beijing Winter Olympics.
–Japan aluminium stocks in October up 1.1% m/m.
–Data showed that China’s social inventories of aluminium across eight consumption areas dropped 15,000 mt on the week to 1 million mt.
Courtesy: Kedia Commodities
Source: Comodity Online