Mentha Oil market under short covering; Support seen at 1655.2
MCX Aluminium expected to trade between 142.6-144.4 levels
MCX Zinc may trade in a range between 169.7-174.9
MCX Copper likely to trade between 408.7-417.1 levels
MCX Natural Gas may trade in a range between 205-209.6
Technically Nickel market is getting support at 938.3 and below same could see a test of 932.1 levels and resistance is now likely to be seen at 950.6, a move above could see prices testing 956.7.
Nickel on MCX settled up 0.23% at 944.60 but sentiments remain weak as worries about demand resurfaced ahead of trade talks between the United States and China that are seen as unlikely to yield progress.
While as Chinese authorities step up environmental protection, uncertainties grew across planned new capacities or capacities to resume. Xinhai Technology and Jinhaihui Technology in Shandong province plan to expand capacity while Baotong Nickel in Jiangsu province may resume operation.
Meanwhile prices are expected to continue to trade in broad range of 920-970 range bound patterns as investors monitor US-China 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. Yesterday LME base metals, except for copper, rose across the board.
Supply constraints have largely accounted for the sluggish housing market, but there are growing concerns that higher home prices and rising mortgage rates will slow demand. Now day ahead the key developments to monitor today are the August Markit manufacturing PMI data for the eurozone, Germany and the US, US weekly initial claims, July new home sales as well as preliminary eurozone consumer confidence figures for August. Also the ECB will release minutes for its monetary policy meeting today.
Trading Ideas:
–Nickel trading range for the day is 932.1-956.7.
–Nickel prices seen supported due to shrinking inventories and upbeat fundamentals front.
–China’s top steelmaking city Tangshan said it will enforce emergency pollution-reduction measures on Tuesday till Aug. 27
–China imported 6.03 million wmt of nickel ore in Jul, up 4% on the month.
Courtesy: Kedia Commodities
Source: Commodityonline.com
