MCX Aluminium may trade between 138.7-143.7 levels
Zinc market under long liquidation; Support seen at 178.4
MCX Copper may trade in a range between 424.1-435.5
Natural Gas market under short covering; Resistance seen at 191.3
MCX Crude Oil may trade between 4662-4856 levels
Technically Nickel market is getting support at 928.1 and below same could see a test of 919.4 levels and resistance is now likely to be seen at 945.9, a move above could see prices testing 955.
Nickel on MCX settled up 0.26% at 936.70 while prices on LME finished 0.6 percent weaker at $13,680 hovered around its daily moving average after it broke pressure at $13,800/mt and touched $13,840/mt. It closed at $13,715/mt with LME inventory falling 318 mt to 260,400 mt.
We see upward room in the nickel prices, given low inventories across LME and domestic warehouses, tight supply of nickel pig iron, and more downstream demand for stainless steel.
China is still the driver of industrial metal prices, and signs of a loss of growth momentum in the world’s single largest metals user formed the backdrop for the current blood-bath. China bears can take their pick of factors, from a crackdown on the shadow finance sector, slowing property investment or sliding manufacturing indices. These concerns have been around for many months.
As far back as January Goldman Sachs, telling investors not to worry about the Chinese property market. Trade tensions between the United States and China have simply served to stoke further such pre-existing fears.
Trade tensions between the United States and everyone else raise the risk of a global hit on manufacturing growth, the engine on which industrial metals run. Last night the US dollar dipped to around 94, and closed at 94.19. Base metals were under pressure from ongoing worries over a trade war even though the EU and US declared a ceasefire.
Now day ahead key things to watch today will be the European central bank’s rate decision for July, the US durable goods orders and wholesale inventories last month, as well as its weekly jobless claims.
Trading Ideas:
–Nickel trading range for the day is 919.4-955.
–Nickel recovered from lows amid low inventories across LME and domestic warehouses, tight supply of nickel pig iron.
–A high-grade nickel pig iron (NPI) plant in north China has suspended its production since last week on environmental concerns.
–The global nickel market deficit widened to 15,400 tonnes in May from a revised deficit of 14,700 tonnes in the previous month, INSG said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
