MCX Nickel may trade between 906.9-957.3 levels
MCX Copper likely to trade in a range between 415.7-440.1
Natural Gas market under short covering; Support seen at 187.2
Crude Oil market under fresh buying; Support seen at 4682
Silver market under short covering; Support seen at 38169
Technically market is getting support at 177.9 and below same could see a test of 174.7 levels and resistance is now likely to be seen at 183.8, a move above could see prices testing 186.5.
Zinc on MCX settled up 2.11% at 181.10 as support seen after the news that North China NPI plant suspends output for one month. China’s ‘Make skies blue again’ initiative will continue to target the steel industry, given the large amounts of pollutants that the industry discharges, said Li Xinchuang, president of China Metallurgical Industry Planning and Research Institute.
The industry has made much progress in environmental protection over the last decade. Emissions of sulphur dioxide, particulate matter, and other major pollutants have decreased by over 60% from 10 years ago, Li said at the 9th steel industry energy saving and emission reduction forum on Saturday July 21.
China, is home to technologically-advanced companies such as Shanghai Baosteel and Taiyuan Iron & Steel. But there remains a number of outdated plants plagued by severe pollution woes that requires urgent upgrading. Last night the US dollar index fell 0.05% to close at 94.58 with pressure from a stronger euro, which was buoyed by robust German economic data.
Yesterday LME base metals rose across the board with copper leading the gains and closing 2.2% higher. Nickel grew nearly 1.7%, zinc increased almost 1.6%, lead gained over 1% and aluminium inched up. Markit’s Germany manufacturing PMI exceeded the expected 55.5 and rose to 57.3 in July, from 55.9 the previous month.
This marked the strongest reading in three months, indicating that strength in the manufacturing sector helped the country regain some momentum after its weak performance in the second quarter.
Trading Ideas:
–Zinc trading range for the day is 174.7-186.5.
–Zinc gained after China approved new fiscal measures to bolster its economy.
–Ample supplies in the market shrank zinc spot premiums in Shanghai to 180-200 yuan/mt.
–South Korea bought 1,000 tonnes of zinc for loading in October via a private contract tender that closed on July 20.
Source: Commodityonline.com
