MCX Zinc likely to trade between 169.1-176.7 levels
MCX Copper likely to trade between 411.9-428.3 levels
MCX Natural Gas may trade in a range between 184.8-192.6
Crude Oil market under short covering; Support seen at 4608
Silver market under fresh selling; Support seen at 38256
Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 5.36% to settled at 7828 while prices down 6.9 rupees.
Now MCX Nickel is getting support at 913.5 and below same could see a test of 903.5 levels and resistance is now likely to be seen at 938.7, a move above could see prices testing 953.9.
Nickel on MCX settled down -0.74% at 923.60 tracking weakness from LME Nickel which finished down 1.3 percent at $13,490 a tonne after hitting its lowest since April 12 at $13,475 pushed down by a stronger dollar and fears that demand will be damaged by a global trade war and weaker economic growth in top consumer China.
The stronger dollar pressured metals by making them more expensive for users of other currencies. Last night the US dollar index gained 0.48% to close at 94.96 on Federal Reserve Board chairman Jerome Powell’s remarks that back more rate increases as the economy is growing “considerably stronger”.
Robust data from the US industrial production and home builder confidence also provided support. Base metals saw mixed trading on the impact of trade war and slower growth of China’s economy. LME aluminium lost 1.5%, copper and nickel edged down, while zinc rebounded over 1%, and lead and tin gained slightly.
Copper and zinc touched a low in nearly a year overnight. Nickel and aluminium dipped to the lowest levels in four months. Meanwhile the US industrial production rose 0.6% last month after falling 0.5% in May. This was buoyed by a sharp rebound in manufacturing and further gains in mining output, the latest sign of robust economic growth in the second quarter.
Mining production increased 1.2% in June, adding to the 2.2% rise in May. The rise drove the mining output to a record high.
Trading Ideas:
–Nickel trading range for the day is 903.5-953.9.
–Nickel prices dropped in the wake of data that showed slowing growth in the Chinese economy and amid an intensifying trade spat with the US.
–China’s economy expanded at a slower pace in the second quarter as Beijing’s efforts to contain debt hurt activity, while a slowing property market also clouded the demand.
–China’s factory output growth weakened to a two-year low in a worrying sign for investment and exporters as a trade war with the United States intensified.
Courtesy: Kedia Commodities
Source: Commodityonline.com
