Aluminium market under fresh buying; Support seen at 141.6
Nickel market under long liquidation; Support seen at 939.8
MCX Cotton under fresh buying; Support seen at 23334
MCX Cardamom under fresh buying; Resistance seen at 1363.5
Copper market under short covering; Support seen at 408.8
Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 8.99% to settled at 8340 while prices down -0.95 rupees.
Now MCX Zinc is getting support at 166.2 and below same could see a test of 165.3 levels and resistance is now likely to be seen at 168.3, a move above could see prices testing 169.5.
Zinc on MCX settled down 0.57% at 167.05 struggled to hold 170 level mark despite the dollar slipped and the market awaited crunch U.S.-China trade talks in Washington.
The dollar sagged as investor demand receded, with the focus on discussions between the world’s top two economies due this week. LME zinc came off from early highs and finished Monday 0.52% lower at $2,376/mt. It is likely to test the resistance at $2,400/mt again today with a trading range of $2,370-2,420/mt.
Zinc prices can have received some support from shrinking inventories across Shanghai, Tianjin and Guangdong and the high spot premiums. Last night the US dollar index fell below 96 to the lowest in almost one week at 95.76 on Monday after US President Donald Trump scorned the Federal Reserve’s decision to raise interest rates.
Trump told Reuters he was “not thrilled” with Fed Chair Jerome Powell for the bumps to the federal funds rate. He said he would criticise the Fed if it continues to elevate the cost of borrowing. LME base metals closed mixed on Monday.
Aluminium rose over 1%, copper gained 0.94%, nickel inched up 0.44% while zinc fell 0.52% and lead dropped 1%. SHFE base metals rose across the board overnight. Aluminium jumped 1.6%, zinc gained 0.93%, copper increased 0.71% with nickel up 0.63% and lead up 0.26%.
Trading Ideas:
–Zinc trading range for the day is 165.3-169.5.
–Zinc dropped on profit booking after prices seen supported led by a rise in the Chinese yuan on reports the U.S. and China were looking to resolve their tit-for-tat trade war.
–The dollar sagged as investor demand for the safe-haven currency receded on optimism over a reduction in U.S.-China trade tensions.
–Social inventories of zinc across Shanghai, Tianjin and Guangdong shrank substantially from a week ago as imported cargoes moved directly downstream.
Courtesy: Kedia Commodities
Source: Commodityonline.com
