MCX Nickel may trade in a range between 889.7-946.9 levels
Zinc market under short covering; Support seen at 177.5
MCX Aluminium under fresh selling; Resistance seen at 139.7
MCX Mentha Oil under short covering; Support seen at 1523.8
Natural Gas market under fresh buying; Support seen at 194.5
Technically market is under short covering as market has witnessed drop in open interest by -8.17% to settled at 27710 while prices up 2.2 rupees, now Copper is getting support at 414 and below same could see a test of 409 level, And resistance is now likely to be seen at 423.2, a move above could see prices testing 427.4.
Copper on MCX settled up 0.53% at 419.05 as the dollar lost ground after weaker-than-expected U.S jobs data. China’s lower Caixin purchasing managers’ index (PMI) in July also accounted for weaker prices of copper.
Workers at the Escondida copper mine in Chile will go on strike unless the company improves their previous offer by August 6. 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. Headline stocks in copper fell 825 tonnes to 250,625 tonnes.
Headline stocks have shed 35 percent since late March to the lowest since Jan. 22. China’s central bank said it would require banks to keep reserves equivalent to 20 percent of their clients’ foreign exchange forwards positions from Monday, in a move to stabilise the yuan currency.
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. Factory goods orders increased 0.7% from a month ago in June, boosted by strong demand the Commerce Department said.
Trading Ideas:
–Copper trading range for the day is 409-427.4.
–Copper prices gained as the dollar lost ground after weaker-than-expected U.S jobs data.
–Workers at the Escondida copper mine in Chile will go on strike unless the company improves their previous offer by August 6.
–Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 2.2 percent from last Friday, the exchange said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
