MCX Zinc expected to trade between 174.7-186.5 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 MCX Nickel is getting support at 920.6 and below same could see a test of 906.9 levels and resistance is now likely to be seen at 945.8, a move above could see prices testing 957.3.
Nickel on MCX settled up 1.73% at 934.30 on short covering as support seen after the Shanghai base metals complex was up across the board, with zinc and nickel both gaining more than 1 percent.
Support also seen after Norilsk Nickel plans to continue its legal action against the government of Botswana after a ruling that it cannot take the case to the London Court of International Arbitration. Also China will adopt a more vigorous fiscal policy to help tackle external uncertainties without resorting to strong policy stimulus.
Slowing economic growth has sparked a heated debate among government researchers on whether fiscal policy should play a bigger role in softening the impact of a trade war with the United States. 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 purchasing managers’ index 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.
Now day ahead key factors to watch today will be the US weekly crude oil inventories from the EIA as well as Germany’s Ifo business climate index in July.
Trading Ideas:
–Nickel trading range for the day is 906.9-957.3.
–Nickel gained amid continued concerns about tight supplies over more stringent environmental measures.
–China will adopt a more vigorous fiscal policy to help tackle external uncertainties without resorting to strong policy stimulus.
–Inventories across all Chinese ports increased by 360,000 wmt from a week ago to 9.85 million wmt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
