Mentha Oil market under short covering; Support seen at 1655.2
MCX Nickel may trade in a range between 932.1-956.7
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 market is getting support at 143 and below same could see a test of 142.6 levels and resistance is now likely to be seen at 143.9, a move above could see prices testing 144.4.
Aluminium on MCX settled up 0.1% at 143.45 as positive market sentiment about the US-China trade talks boosted the complex. Concerned raised after the news that the Aluminum Association wants US and Chinese officials to address the issue of Beijing’s aluminium overcapacity at meetings on August 22-23 with an eye toward reaching a long-term solution.
A safeguard investigation by the Eurasian Economic Commission was started primarily to protect the Russian market from imports originating from Ukraine, market. Tonight, the market will take cues from developments of US-Sino trade negotiations and US sanctions on Russian aluminium.
Yesterday LME base metals, except for copper, rose across the board. 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 NAR said 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.
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:
–Aluminium trading range for the day is 142.6-144.4.
–Aluminium seen supported as the market will take cues from developments of US-Sino trade negotiations and US sanctions on Russian aluminium.
–Global primary aluminium output rose to 5.472 million tonnes in July from revised 5.334 million tonnes in June, data from the International Aluminium Institute (IAI) showed.
–Primary aluminium inventories across major consumption areas in China continued their decline over the weekend.
Courtesy: Kedia Commodities
Source: Commodityonline.com
