Nickel market under long liquidation; Support seen at 937.1
Copper market under fresh selling; Support seen at 422.6
MCX Natural Gas expected to trade in a range between 189.7-194.3
MCX Cotton under long liquidation
NCDEX Cardamom may trade between 1141.4-1155.4 levels
Technically market is under short covering as market has witnessed drop in open interest by 6.21% to settled at 5480 while prices up 0.6 rupees.
Now MCX Zinc is getting support at 178.5 and below same could see a test of 176.5 levels and resistance is now likely to be seen at 181.7, a move above could see prices testing 182.9.
Zinc prices recovered amid uncertainties from the macroeconomic remain as the market worries about changes in the global trade patterns. Expectations for a rise in zinc concentrate supplies in coming years have driven down the metal price to one-year lows, but smelting capacity constraints suggest the sell-off is premature.
Stocks of zinc in LME approved warehouses, which now stand at 243,100 tonnes, are down 60 percent since September 2015 when Glencore here slashed 500,000 tonnes of annual zinc production. Meanwhile, stocks of the metal in warehouses monitored by the Shanghai Futures Exchange are down 63 percent since March.
The stocks draw in China is partly due to an environmental clampdown in the country, where the Chinese State Council’s bid to curb air pollution has expanded and meant less mining to produce zinc concentrate and less smelting to produce the metal.
Maintenance across smelters continued to weigh on supplies. There were also no large inflows of imported materials this week while downstream consumption fell to the lowest level in a seasonal lull.
Zinc social inventory in Shanghai, Guangdong, and Tianjin rose in the week as arrivals from smelters and downstream consumers’ weak buying interest amid a low season drove up stocks in Tianjin and Guangdong. Meanwhile, limited imported materials saw inventory in Shanghai little changed. Zinc social inventory across the three regions increased by 6,100 mt from Monday to 103,300 mt, data showed.
Trading Ideas:
–Zinc trading range for the day is 176.5-182.9.
–Zinc prices traded in range as worries over growth in top consumer China kept gains in check.
–Maintenance across smelters continued to weigh on supplies.
–There were also no large inflows of imported materials in the week while downstream consumption fell to the lowest level in a seasonal lull.
Courtesy: Kedia Commodities
Source: Commodityonline.com
