MCX Nickel may trade in a range between 889.7-946.9 levels
Copper may trade in a range between 409-427.4 levels
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 Zinc market is under short covering as market has witnessed drop in open interest by 9.01% to settled at 4249 while prices up 2.7 rupees.
Now MCX Zinc is getting support at 177.5 and below same could see a test of 174.2 levels and resistance is now likely to be seen at 183.1, a move above could see prices testing 185.4.
Zinc on MCX settled up 1.52% at 180.65 after reports that China’s PBoC adjusts reserve requirement on FX forwards trading to 20%. Social inventories of zinc in Shanghai, Guangdong, and Tianjin grew 11,600 mt from last Friday to 115,000 mt as of Friday August 3, data showed.
Inflows of imports and limited downstream consumption grew inventories in Shanghai by 3,800 mt on the week. Stocks in Guangdong and Tianjin rose as more cargoes arrived from smelters. Inventories to extend its increase next week as more imports are likely to enter the market.
The number of Americans filing for unemployment benefits rose less than expected last week, suggesting sustained strength in the labour market. US initial claims for state unemployment benefits increased 1,000 to a seasonally adjusted 218,000 for the week ended July 28, the Labor Department said.
The claims report also showed the number of people receiving benefits after an initial week of aid fell 23,000 to 1.72 million in the week ended July 21. New orders for US-made goods rose for a second straight month in June, but business spending plans on equipment less robust than expected, suggesting a potential further slowdown was likely in the third quarter.
Factory goods orders increased 0.7% from a month ago in June, boosted by strong demand for transportation equipment, electrical equipment, appliances and components as well as computers and electronic products, the Commerce Department said.
Trading Ideas:
–Zinc trading range for the day is 174.2-185.4.
–Zinc prices rallies after reports that China’s PBoC adjusts reserve requirement on FX forwards trading to 20%.
–Social inventories of zinc in Shanghai, Guangdong, and Tianjin grew 11,600 mt from last Friday to 115,000 mt as of Friday August 3, data showed.
–Stocks in Guangdong and Tianjin rose as more cargoes arrived from smelters. Inventories to extend its increase next week as more imports are likely to enter the market.
Courtesy: Kedia Commodities
Source: Commodityonline.com
