Natural Gas market under short covering; Support seen at 204.7
Crude Oil market under short covering; Support seen at 4565
MCX Nickel under fresh buying; Resistance seen at 957.3
MCX Aluminium likely to move in a range of 139.8-144
MCX Mentha Oil under long liquidation; Resistance seen at 1666.2
Technically Zinc market is under short covering as market has witnessed drop in open interest by 12.58% to settled at 7652 while prices up 1.1 rupees.
Now MCX Zinc is getting support at 165 and below same could see a test of 162.1 level, And resistance is now likely to be seen at 169.6, a move above could see prices testing 171.3.
Zinc on MCX settled up 0.66% at 168 as data showed that zinc inventories across three major Chinese markets shrank some 16,200 mt over the week. Social inventories of zinc across Shanghai, Tianjin and Guangdong dropped substantially in the week with downstream purchases and limited arrivals from smelters.
The inventory figure came in at 107,000 mt as of Friday August 17, down 16,200 mt, or 13%, from Monday and down 15,900 mt from last Friday, data showed. Inventory drops in Shanghai and Guangdong contributed to the overall decline.
As zinc prices fell, smelters held back from selling while downstream made purchases for restocking. Overall trading was more active than last week. Typhoon Rumbia also delayed some arrivals.
Stocks are likely to halt such decline next week if more imported materials flow into the domestic market. China almost quadrupled the value of fixed-asset investment projects approved in July as Beijing looks to accelerate infrastructure spending to boost the cooling economy.
China gave the greenlight to 17 fixed-asset investment projects in July, worth a combined 77.69 billion yuan ($11.24 billion), Zhao Chenxin, an official at the National Development and Reform Commision (NDRC), told reporters. Beijing is accelerating infrastructure spending and rolling out other support measures for businesses to cushion the economy as it braces for the impact of escalating U.S. trade tariffs.
Trading Ideas:
–Zinc trading range for the day is 162.1-171.3.
–Zinc prices ended with gains as data showed that zinc inventories across three major Chinese markets shrank some 16,200 mt over the week.
–Social inventories of zinc across Shanghai, Tianjin and Guangdong dropped substantially in the week with downstream purchases and limited arrivals from smelters.
–Inventory drops in Shanghai and Guangdong contributed to the overall decline, smelters held back from selling while downstream made purchases for restocking.
Courtesy: Kedia Commodities
Source: Commodityonline.com
