MCX Copper may trade in a range between 409.6-422.2
MCX Crude Oil likely to trade in a range between 4528-4872
MCX Silver likely to trade in a range between 37660-38330
Gold market under fresh selling; Support seen at 29550
NCDEX Turmeric under fresh selling; resistance seen at 7312
Technically Zinc market is under short covering as market has witnessed drop in open interest by 21.03% to settled at 4670 while prices up 2.6 rupees.
Now MCX Zinc is getting support at 175.3 and below same could see a test of 172.6 levels and resistance is now likely to be seen at 179.8, a move above could see prices testing 181.6.
Zinc on MCX settled up 1.48% at 177.95 tracking firmness from LME zinc which climbed up to $2,587.5/mt from initial, moderate losses but edged down and consolidated around $2,565/mt.
Overall sentiments remain weak as U.S. officials confirmed that President Donald Trump’s administration proposed an increase in tariff rate on $200 billion worth of Chinese goods. Fears that the trade row between the world’s top two economies could hit demand for industrial metals.
While LME zinc stocks have been falling consistently for the past five years – since January 2013 zinc stocks have fallen 80% with on-warrant levels most recently at just 215,250 tonnes.
There remain significant dominant position holders in zinc on the LME, with one market participant holding 80-89% of warrant cash positions and one participant holding 50-79% of warrant tom/next positions. Last night the dollar index rose past 95 on Thursday as trade tension between the US and China grew.
LME base metals closed mixed on Thursday. Zinc jumped over 1%, copper and lead inched up while nickel edged down 0.3%, aluminium fell close to 0.7%. SHFE base metals saw a mixed performance overnight. Zinc gained 0.45%, copper and aluminium nudged up 0.14% while tin slid 0.36%, lead slipped 0.88% and nickel dropped over 1%.
Now day ahead key factors to watch today will be China Caixin services purchasing managers’ index (PMI), eurozone retail sales growth in June, US trade balance in June, nonfarm payrolls report and ISM services PMI in July.
Trading Ideas:
–Zinc trading range for the day is 172.6-181.6.
–Zinc recovered on short covering after prices dropped as U.S. officials confirmed a proposed increase in tariff rate on $200 billion worth of Chinese goods.
–Weak consumption in the low season shrank spot zinc premiums in the Shanghai market, expectations of imports also accounted for the lower premiums.
–U.S. President Donald Trump sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports.
Courtesy: Kedia Commodities
Source: Commodityonline.com
