MCX Nickel likely to trade between 902.4-934.6 levels
Zinc market under short covering; Support seen at 175.3
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
Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 7.08% to settle at 3221.
Now MCX Aluminium is getting support at 138.6 and below same could see a test of 137.8 levels and resistance is now likely to be seen at 140.8, a move above could see prices testing 142.2.
Aluminium on MCX settled down 0.64% at 139.35 as the prospect of an all-out Sino-U.S. trade war continued to outweigh other news. New tariffs that the United States is threatening to impose on nearly half the goods imported from China would have a small impact on the Asian nation’s economy and not lead to disaster, Commerce Secretary Wilbur Ross said on Thursday.
While China is considering measures to curb pollution in its smog prone Beijing-Tianjin-Hebei region and nearby areas during the upcoming winter season, including 30 percent production cuts on non-ferrous metal smelting, a draft plan showed on Thursday.
Base metals prices on the London Metal Exchange posted split moves at the close of trading on Thursday August 2, with half of the complex ending lower amid pressure from the re-emergence of trade tensions between the United States and China in addition to a seasonal summer slowdown.
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%. Zinc gained 0.45%, copper and aluminium nudged up 0.14% while 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:
–Aluminium trading range for the day is 137.8-142.2.
–Aluminium prices ended with losses tracking weakness in LME prices as US-China trade disputes intensified.
–China’s inventory of primary aluminium across eight major markets, including SHFE warrants, shrank 14,000 mt to stand at 1.78 million mt.
–Limited arrivals from smelters accounted for the drop, this was slower from a week-on-week drop of 28,000 mt recorded.
Source: Commodityonline.com
