MCX Aluminium may trade between 141.4-148.6 levels
MCX Mentha Oil under short covering; Support seen at 1292.9
MCX Nickel likely to trade in range between 963.5-1022.7
MCX Zinc expected to trade between 189.4-199.2 levels
Natural Gas market under short covering; Resistance seen at 200
Technically Copper market is getting support at 442.4 and below same could see a test of 439 levels and resistance is now likely to be seen at 451.2, a move above could see prices testing 456.6.
Copper on MCX settled down -1.11% at 445.75 on fresh selling as escalating US-China trade tensions kept a lid on the market. Sentiment remained fragile in the face of tense trade relations between the United States and other major economies, with investors braced for another potentially rocky day for Chinese markets.
Meanwhile US President Donald Trump has this year sought to renegotiate some of the United States’ trading relationships, in particular with China. He has imposed tariffs on some imports, in turn sparking retaliatory action by other countries, raising fears of a global trade war.
Growth in China’s manufacturing sector cooled slightly in June as firms faced rising input costs and a decline in export orders amid an escalating trade dispute with the United States. China accounts for nearly half of global copper consumption, estimated this year at around 24 million tonnes.
Monetary easing in China is expected to help support industrial metals. China’s central bank in April unexpectedly cut RRR for most banks, in a move that was earlier and more aggressive than expected, highlighting concerns over liquidity.
The dollar eased marginally against its peers on Tuesday, as the euro steadied after partners in Germany’s coalition settled a row over migration that had threatened to topple Chancellor Angela Merkel’s government.
Now Investors now await the release of the Federal Open Market Committee’s minutes for the June 12-13 meeting next Thursday, at which policymakers raised interest rates by 25 basis points for the second time this year to below 2.0% as expected by analysts, and paved the way for continued policy tightening this year.
Trading Ideas:
–Copper trading range for the day is 439-456.6.
–Copper prices dropped as the market priced in weaker demand in China, which is embroiled in the trade spat with the US even as its manufacturing sector slows.
–Growth in China’s manufacturing sector cooled slightly in June as firms faced rising input costs and a decline in export orders.
–Chalco began the trial operation of its new 400,000-mt copper smelting project in Ningde city.
Courtesy: Kedia Commodities
Source: Commodityonline.com
