Copper market under fresh selling; Support seen at 417.1
Natural Gas market under long liquidation; Support seen at 201.7
Crude Oil market under short covering; Support seen at 4599
NCDEX Turmeric under fresh selling; Resistance seen at 7233
NCDEX Mustard Seed under fresh buying; Support seen at 4118
Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 46.34% to settled at 6426 while prices down -3.45 rupees.
Now MCX Zinc is getting support at 175 and below same could see a test of 173.6 levels and resistance is now likely to be seen at 179, a move above could see prices testing 181.6.
Zinc on MCX settled down 1.92% at 176.4 tracking LME prices dropped by 2.6 percent to $2,547 as the dollar rose after U.S. data pointed to a steady increase in inflation pressures that keeps the Federal Reserve on track to gradually raise interest rates.
Washington unveiled a list of roughly $16 billion worth of Chinese imports that will be hit with 25% tariffs from August 23. Better-than-expected data on US initial jobless claims and generally rising producer prices also helped the dollar hold its gains.
U.S. inflation unexpectedly held steady in July, relieving the pressure on the Federal Reserve to speed up its normalization of monetary policy. Social inventories of zinc across Shanghai, Tianjin and Guangdong grew some 7,900 mt from last Friday to stand at 122,800 mt on Friday August 10, data showed.
An increase of 10,300 mt in Tianjin over the week accounted for the rise. The city also saw greater arrivals of Shuangyan, Zijin, and Hongye brand cargoes. Maintenance lowered output of refined zinc across Chinese smelters to 408,400 mt in July, down 21,700 mt or 5.1% from June. This is down 10.2% from July 2017.
Total output in the first seven months of the year stood at 3.1 million mt, up 1.7% on the year. Output of refined zinc in August is expected to grow 18,500 mt or 4.5% from July but fall 4.3% on the year to stand at 426,900 mt.
Trading Ideas:
–Zinc trading range for the day is 173.6-181.6.
–Zinc dropped tracking weakness in LME prices due to a rapid rise in the dollar.
–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
