Mentha Oil market under long liquidation; Support seen at 1496.4
MCX Nickel under short covering; Support seen at 937.2
MCX Copper may trade between 418.7-430.1 levels
Natural Gas market under fresh buying; Support seen at 191.5
Crude Oil market under fresh buying; Support seen at 4742
Technically Aluminium market is under short covering and getting support at 140.5 and below same could see a test of 139.4 levels and resistance is now likely to be seen at 142.5, a move above could see prices testing 143.4.
Aluminium on MCX settled up 0.89% at 141.70 gained on short covering led by a 1% climb in LME aluminium prices while broad risk aversion continues to dominate market sentiment.
LME aluminium climbed past the five-day moving average and hit a high of $2,093/mt on Monday. It is likely to extend its gains if its SHFE counterpart continues to strengthen. As primary aluminium inventory in China continued to shrink, the contract is likely to rise and try to break 14,500 yuan/mt level soon.
While a downtick in the US dollar index, which made steady gains over the bulk of the July period, gave some relief to the complex, which prices struggled to find support. While fears of supply interruptions were matched by worries of weaker demand in China, where factory sector growth is expected to have slowed for a second month in July.
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The official PMI survey is due on Tuesday and the private Caixin manufacturing PMI on Aug. 1. Traders largely refrained from building up positions ahead of the Federal Reserve’s monetary policy review, due later this week.
The Federal Reserve is scheduled to meet on Tuesday and Wednesday this week. It is widely expected that the Fed will not hike interest rate on Wednesday, although many are of the view that a rate hike is imminent in September.
During the week, the Bank of Japan and the Bank of England are also scheduled to announce their monetary policies.
Trading Ideas:
–Aluminium trading range for the day is 139.4-143.4.
–Aluminium prices gained as primary aluminium inventory in China continued to shrink
–China’s primary aluminium inventory continued to shrink over the weekend as consumption was bolstered by exports despite a low season in the domestic market.
–The inventory across eight major consumption areas, including SHFE warrants, decreased 15,000 mt from last Thursday to 1.78 million mt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
