Mentha Oil market under fresh selling; Resistance seen at 1552.8
Nickel market under short covering; Support seen at 922
MCX Cotton market under short covering; Support seen at 23770
MCX Cardamom under short covering
NCDEX Jeera under fresh selling; Support seen at 19900
Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 8.35% to settled at 4604.
Now MCX Zinc is getting support at 177.2 and below same could see a test of 175.6 levels and resistance is now likely to be seen at 180.3, a move above could see prices testing 181.8.
Zinc on MCX settled down 1.13% at 178.60 tracking weakness from LME zinc which fared worst in the base metals complex, falling 2.2 percent to $2,570.50 a tonne, while Shanghai lead ended down 1.4 percent as an escalating trade war between Washington and Beijing raised concerns over demand in top industrial metals consumer China.
On Friday China unveiled tariffs on 5,207 items imported from the United States, with the extra levies ranging from 5 percent to 25 percent, which analysts say could eventually undermine growth. However, even though items earmarked for the 25 percent tariff include copper ore and concentrates, the quantities involved are not significant for China.
Last night the US dollar index strengthened further and closed at 95.35 overnight as investors bet that trade wars and a robust US economy would continue to drive the currency higher. The greenback was also boosted on Monday by disappointing German industrial orders in June and fears of a no-deal Brexit.
Washington has also reimposed economic sanctions on Iran. Base metals closed mixed overnight. Base metals prices look likely to remain vulnerable to the stronger dollar this week, as expectations for additional U.S. interest rate hikes this year underpin demand for the greenback.
While today key things to watch today include eurozone industrial output and trade balance in June, China’s foreign exchange reserves for July, US job openings and labor turnover survey (JOLTS) in June and weekly crude oil inventory data from the API.
Trading Ideas:
–Zinc trading range for the day is 175.6-181.8.
–Zinc dropped as prices face strong pressure from the US-China trade disputes and a slowdown in Chinese economic growth.
–China’s central bank said it would require banks to keep reserves equivalent to 20 percent of their clients’ foreign exchange forwards positions.
–Social inventories of zinc in Shanghai, Guangdong, and Tianjin grew 11,600 mt from last Friday to 115,000 mt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
