MCX Gold may trade in a range between 30423-30805
MCX Aluminium under fresh buying; Support seen at 143.3
MCX Mentha Oil under short covering
NCDEX Castor under fresh buying; Support seen at 4371
MCX Cardamom under fresh buying; Resistance seen at 1060.7
Technically Zinc market is under short covering as market has witnessed drop in open interest by 17.32% to settled at 6298 while prices up 3.3 rupees.
Now MCX Zinc is getting support at 187.7 and below same could see a test of 184.7 level, And resistance is now likely to be seen at 192.3, a move above could see prices testing 193.9.
Zinc on MCX settled up 1.76% at 190.6 on short covering after prices remained under pressure as the market looked ahead to rising supplies, a narrowing deficit and global trade tensions that are expected to weigh on industrial metals overall.
Trade war concerns are dominating market sentiment. In the absence of any major policy stimuli announcement in China or signs of moderation in U.S.-China tensions, the base metals complex will remain pressured.
Worries about nearby supplies due to large holdings of zinc warrant and cash contracts – between 50 and 59 percent – have seen the premium for the cash contract over the three-month contract rise above $51 a tonne.
That compares with a discount nearly two months ago. Zinc social inventory in Shanghai, Guangdong and Tianjin dipped over the week ended Friday July 6 as downstream restocked on declining zinc prices.
Less imported cargos given closed import window, and limited arrivals from smelters also accounted for the drop in inventory. As of Friday, the overall inventory shrank 12,200 mt from last Friday to 112,200 mt, with inventory in Shanghai down 11,000 mt to 84,200 mt, data showed.
China produced 429,800 mt of refined zinc in June, up 1.6% month on month but down 7.1% year on year. The output during January-June came in at 2.69 million mt, up 3.7% from the same period last year. The output is expected to decrease 21,600 mt, or by 5%, to 408,100 mt in July.
Trading Ideas:
–Zinc trading range for the day is 184.7-193.9.
–Zinc gained on short covering after prices remained under pressure as the market looked ahead to rising supplies, a narrowing deficit and global trade tensions.
–Zinc social inventory in Shanghai, Guangdong and Tianjin dipped over the week ended Friday July 6 as downstream restocked on declining zinc prices.
–China produced 429,800 mt of refined zinc in June, up 1.6% month on month but down 7.1% year on year.
Courtesy: Kedia Commodities
Source: Commodityonline.com
