Mentha Oil market under short covering; Support seen at 1655.2
MCX Aluminium expected to trade between 142.6-144.4 levels
MCX Nickel may trade in a range between 932.1-956.7
MCX Copper likely to trade between 408.7-417.1 levels
MCX Natural Gas may trade in a range between 205-209.6
Technically Zinc market is getting support at 171.4 and below same could see a test of 169.7 levels and resistance is now likely to be seen at 174, a move above could see prices testing 174.9.
Zinc on MCX settled up 1.26% at 173.05 gained on short covering tracking firmness from LME Zinc prices which gained 1.7 percent to settle at $2,467 as Worries about a tight LME zinc market have receded as a large holding of 50 to 79 percent of stocks has been cut.
Yesterday LME base metals, except for copper, rose across the board. At one point of time LME Zinc surged 1.3%, LME nickel inched up 0.15%, LME aluminium and LME lead nudged up 0.02% posting sizable gains while the complex benefited from positive market sentiment on US-Sino trade talks.
Last night the US dollar index closed at 95.075 after it fell to 94.93, the lowest since August 2 as officials at the Federal Reserve said that it will “likely soon be appropriate to take another step in removing policy accommodation”.
The Fed meeting minutes for August also showed that central bank officials are concerned that the ongoing trade war will pose the biggest threat to an otherwise “strong” economy.
From data side US home sales fell for a fourth straight month in July as a shortage of properties in the market pushed up house prices. This is likely to have sidelined some potential buyers. The National Association of Realtors said on Wednesday that existing home sales fell 0.7% to a seasonally adjusted annual rate of 5.34 million units last month.
Rising costs of construction material as well as shortages of land and labour have left builders unable to bridge the inventory gap, pushing up house prices. Also the ECB will release minutes for its monetary policy meeting today.
Trading Ideas:
–Zinc trading range for the day is 169.7-174.9.
–Zinc gained as funds cut bets on lower prices and the dollar retreated from recent highs while the market waited for talks on the U.S.-China trade dispute.
–The global zinc market saw a surplus of 3,000 tonnes in June from a deficit of 26,000 tonnes in May, data from the ILZSG showed.
–Deliverable zinc inventories in warehouses monitored by the Shanghai Futures Exchange (ShFE) fell 29.1 percent from the previous week, according to exchange data.
Courtesy: Kedia Commodities
Source: Commodityonline.com
