Mentha Oil market under fresh buying; Support seen at 1560.5
Aluminium market under fresh buying; Support seen at 141
MCX Nickel may trade in a range between 947.2-969
Zinc market under short covering; Support seen at 180.1
MCX Cotton under fresh selling; Resistance seen at 24016
Technically Copper market is under fresh selling as market has witnessed gain in open interest by 3.53% to settled at 29016 while prices down 0.1 rupees.
Now MCX Copper is getting support at 415.6 and below same could see a test of 413.2 levels and resistance is now likely to be seen at 421, a move above could see prices testing 424.
Copper on MCX settled down -0.02% at 418 traded in the range with mixed fundamentals where by pressure seen in yesterday’s session as the United States geared up to begin collecting tariffs on a further $16 billion of Chinese goods later this month but a weaker dollar stemmed losses.
Whiled speculation are high from the talk with union at Chile’s Escondida copper mine, the world’s largest, which said BHP must alter its negotiating strategy and improve its contract offer during the final phase of talks if it hoped to avoid a strike. The dollar inched down versus a basket of currencies, making dollar-denominated assets like copper cheaper for holders of other currencies, even after the U.S.
Trade Representative’s office said the U.S. would begin collecting 25 percent tariffs on another $16 billion in Chinese goods later this month. Last night the dollar index slipped 0.07% to 95.098 overnight, while the pound dropped to its lowest level in almost a year on Wednesday as investors ramped up bets on Britain leaving the EU without an agreement with Brussels.
Also China announced on Wednesday that it would levy additional import tariffs of 25% on $16 billion worth of US goods ranging from oil and steel products to autos and medical equipment on August 23. That came in response to the US decision of imposing the same tariff on an equal amount of Chinese imports on the same day. Resulting LME base metals closed mixed on Wednesday.
Trading Ideas:
–Copper trading range for the day is 413.2-424.
–Copper settled flat after the dollar weakened against a basket of major currencies as its recent rally fuelled by U.S.-China trade tensions appeared to fizzle.
–Downstream restocking, and greater demand from rod producers lowered copper inventories across SHFE warehouses to the current six-month low.
–Customs data also showed that imports of unwrought copper and copper products in July grew 15.9% from a year ago and stood at 452,000 mt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
