MCX Aluminium may trade between 140.6-144.4 levels
Nickel market under long liquidation; Support seen at 916.6
MCX Zinc may trade in a range between 161.9-173.1
Natural Gas market under long liquidation; Support seen at 202.4
MCX Crude Oil under long liquidation; Support seen at 4516
Technically MCX Copper is getting support at 413.3 and below same could see a test of 410.5 levels and resistance is now likely to be seen at 420.8, a move above could see prices testing 425.5.
Copper on MCX settled down 1.78% at 416.05 on Tuesday while on Wednesday prices crashed in international markets after the union at the mammoth Escondida copper mine in Chile said talks with operator BHP would be extended by a day in the hopes of averting a planned strike.
Indian markets remain closed Wednesday on account of Independence Day. The union said it was closer to a contract agreement after days of closely-watched negotiations, amid fears of a repeat of last year’s strike at the world’s biggest copper mine, which dragged on for 44 days.
The union for Chile’s Escondida mine said it was closer to a contract agreement, although health benefits and some other sticking points must be ironed out before a deal can be reached.
The dollar advanced to a 13-month peak on Tuesday against a basket of major currencies as traders increased their safe-haven holdings of the U.S. currency on worries about the fallout from the Turkish lira’s recent drop. A stronger dollar makes metals more expensive for holders of other currencies.
Losses on Wednesday were triggered by a broad retreat in China as the yuan weakened and recent data showed the economy hit a rough patch. The metal’s losses have accelerated as investors flee to the relative safety of the dollar amid Turkey’s financial woes and as concern grows that a U.S.-China trade spat will curb economic growth, hurting demand for raw materials.
Now a day ahead key things to watch today include the eurozone’s seasonally adjusted current account surplus in June and US initial jobless claims last week.
Trading Ideas:
–Copper trading range for the day is 395.2-420.2.
–Copper prices ended with losses on news of fresh U.S.-China trade talks.
–The union for Chile’s Escondida said that it will avert its planned strike to consult members about a renewed proposal for a labour contract from BHP.
–China’s July refined copper output rises 11.8 pct y/y to 732,000 tonnes – stats bureau
Courtesy: Kedia Commodities
Source: Commodityonline.com
