MCX Nickel may trade in a range between 889.7-946.9 levels
Zinc market under short covering; Support seen at 177.5
Copper may trade in a range between 409-427.4 levels
MCX Mentha Oil under short covering; Support seen at 1523.8
Natural Gas market under fresh buying; Support seen at 194.5
Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 21.14% to settled at 3902 while prices down 0.6 rupees.
Now MCX Aluminium is getting support at 138.2 and below same could see a test of 137.6 level, And resistance is now likely to be seen at 139.7, a move above could see prices testing 140.6.
Aluminium on MCX settled down 0.43% at 138.75 as pressure continues on worries over possible escalated trade tension between China and the US. U.S. jobs growth slowed more than expected in July, likely due to companies’ struggles to find qualified workers and the unemployment rate declined, pointing to tightening labour market conditions.
China’s Commerce Ministry said Beijing’s new set of proposed import tariffs on $60 billion worth of U.S. goods were rational and restrained, warning it reserved the right of further countermeasures in the intensifying trade war.
The city of Chaoyang in China’s northeastern province of Liaoning says it had cancelled a planned alumina project after a public consultation. The U.S. trade deficit recorded its biggest increase in more than 1-1/2 years in June as the boost to exports from soybean shipments faded and higher oil prices lifted the import bill.
China’s inventory of primary aluminium across eight major markets, including SHFE warrants, shrank 14,000 mt from last Thursday to stand at 1.78 million mt, data showed. Limited arrivals from smelters accounted for the drop.
However, this was slower from a week-on-week drop of 28,000 mt recorded. During the week, inventories gained 1,000 mt from Monday July 30. Spot aluminium discounts in east China narrowed as traders remained keen to purchase. Discounts stood at 70-50 yuan/mt against the SHFE August contract, narrower from 80-70 yuan/mt the previous day.
Trading Ideas:
–Aluminium trading range for the day is 137.6-140.6.
–Aluminium prices ended with losses as pressure continues on worries over possible escalated trade tension between China and the US.
–China’s inventory of primary aluminium across eight major markets, including SHFE warrants, shrank 14,000 mt from last Thursday to stand at 1.78 million mt.
–Spot aluminium discounts in east China narrowed as traders remained keen to purchase.
Courtesy: Kedia Commodities
Source: Commodityonline.com
