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
Copper market under fresh selling; Support seen at 415.6
MCX Cotton under fresh selling; Resistance seen at 24016
Technically Zinc market is under short covering as market has witnessed drop in open interest by 4.77% to settled at 4250 while prices up 0.4 rupees.
Now MCX Zinc is getting support at 180.1 and below same could see a test of 179.3 levels and resistance is now likely to be seen at 181.9, a move above could see prices testing 182.9.
Zinc on MCX settled up 0.22% at 180.95 gained tracking firmness from LME Zinc gained 0.5 percent to $2,612 a tonne gained on short covering as the dollar weakened against a basket of major currencies as its recent rally fueled by U.S.-China trade tensions appeared to fizzle, with nickel hitting a one-week peak.
The dollar inched down versus a basket of currencies, making dollar-denominated assets like bsemetals 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.
A day ahead key things to watch today include China’s consumer and producer inflation, total social financing and M2 money supply in July, US producer inflation in July, initial jobless claims last week and wholesale inventories in June.
Trading Ideas:
–Zinc trading range for the day is 179.3-182.9.
–Zinc gained as prices seen supported as market sentiment improved on faster-than-expected growth in China’s imports and exports.
–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.
–China’s foreign exchange reserves increased in July, figures from People’s Bank of China showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
