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
Zinc market under fresh selling; Support seen at 166.2
Copper market under short covering; Support seen at 408.8
Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 0.19% to settled at 3121 while prices up 1.2 rupees.
Now MCX Aluminium is getting support at 141.6 and below same could see a test of 140.1 levels and resistance is now likely to be seen at 144.6, a move above could see prices testing 146.1.
Aluminium on MCX settled up 0.85% at 143.10 gained tracking LME aluminium prices which hit a high of $2,084.5/mt before it finished 1.3% higher at $2,058.5/mt on Monday. Aluminium prices received a boost from the latest increase in National Aluminium Company (Nalco)’s alumina shipment price.
ShFE aluminium was the biggest gainer, rising 1.5 percent to 14,635 yuan a tonne, after a similar jump in London on Monday. Overall yesterday Base metals prices on the London Metal Exchange were mostly higher at the close of trading on Monday August 20, boosted by growing optimism over US-Sino trade relations amid a slight retreat in the dollar index.
Also support seen this week, six environmental inspection teams would settle across cities in Jiangsu province for about 10 days, the provincial environmental protection bureau said on Monday. 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%. Now day ahead key thing to watch this week would be the upcoming US-China trade talks.
Trading Ideas:
–Aluminium trading range for the day is 140.1-146.1.
–Aluminium gained on easing trade tensions between the U.S. and China, and signs of stronger demand.
–Primary aluminium inventories across major consumption areas in China continued their decline over the weekend with limited arrivals and downstream purchases.
–Stocks across eight consumption areas, including SHFE warrants, shrank some 20,000 mt to stand at 1.74 million mt as of Monday August 20.
Courtesy: Kedia Commodities
Source: Commodityonline.com
