Mentha Oil market under long liquidation; Support seen at 1482.8
MCX Nickel may trade between 906.9-957.3 levels
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
Technically Aluminium market is under short covering as market has witnessed drop in open interest by 4.56% to settled at 2576 while prices up 0.45 rupees.
Now MCX Aluminium is getting support at 140.9 and below same could see a test of 139.5 levels and resistance is now likely to be seen at 144.1, a move above could see prices testing 145.9.
Aluminium on MCX settled up 0.32% at 142.25 gained on short covering tracking gains from LME Aluminium prices which hit two-week highs as funds cut bets on lower prices placed in anticipation of sanctions on Rusal being lifted, with the market also factoring in an expected drop in supplies from China.
LME aluminium was up 1.3 percent at $2,096 a tonne after climbing as high as $2,107.50, its strongest since July 10. US Treasury Secretary Steven Mnuchin said on Friday that the objective was “not to put Rusal out of business” and that the government was open to removing Russian aluminum producer Rusal from a US sanctions list.
China accounts for more than 55 percent of global aluminium supplies estimated this year at about 65 million tonnes. A recent Reuters survey showed that analysts on average expect the aluminium market to be in a deficit of 599,000 tonnes this year and 570,000 tonnes in 2019.
While Consumption of aluminium, used widely in the transport and packaging industries, is expected grow by about 5 percent this year and next. Analysts expect China’s demand growth to outpace supply growth this year and next. Yesterday LME base metals rose across the board with copper leading the gains and closing 2.2% higher.
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:
–Aluminium trading range for the day is 139.5-145.9.
–Aluminium pared most of its gains as LME inventory increased and the probability for the US to lift its sanction against Rusal increases leading to rise in inventories.
–China exported 118,000 mt of alumina last month, surpassing May’s export of 89,999 mt and marking the highest level since 2002.
–China’s inventory of primary aluminium across eight major markets, including SHFE warrants, lost 16,000 mt to stand at 1.81 million mt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
