MCX Aluminium may trade in a range between 143.8-145.8
Nickel market under fresh selling; Support seen at 929
Copper market under short covering; Support seen at 417.1
MCX Natural Gas under long liquidation; Support seen at 200.8
MCX Crude Oil may trade between 4779-4861 levels
Technically Zinc market is under short covering as market has witnessed drop in open interest by 0.24% to settled at 5086 while prices up 0.25 rupees.
Now MCX Zinc is getting support at 177.1 and below same could see a test of 176.1 levels and resistance is now likely to be seen at 178.9, a move above could see prices testing 179.7.
Zinc on MCX settled up 0.14% at 178.20 gained on short covering but lacked upward momentum with pressure from rising shorts. An inflow of imported zinc and sluggish downstream consumption will further weigh on prices.
Yesterday support seen as Shanghai base metal prices rose, with zinc climbing for a sixth day and hitting a two-week high as inventories in China languish at their lowest in a decade. Zinc stocks in warehouses monitored by the Shanghai Futures Exchange fell 11.8 percent last week to 30,800 tonnes, their lowest since October 2007.
Meanwhile, zinc inventories in warehouses approved by the London Metal Exchange have dropped for eight straight days. ShFE zinc has lost 15 percent year-to-date, weighed down by concerns over global oversupply and fears the U.S-China trade row will hurt demand for industrial metals.
Last night the US dollar slumped to the lowest in four weeks at 94.76 while the Mexican peso climbed higher after the two countries reached a preliminary trade deal that could replace the North American Free Trade Agreement (NAFTA).
Now Market participants should monitor developments such as Germany’s actual monthly retail sales in July, US wholesale inventories in July, and its Conference Board (CB) consumer confidence index for August.
Trading Ideas:
–Zinc trading range for the day is 176.1-179.7.
–Zinc prices gained as inventories in China languish at their lowest in a decade.
–Zinc stocks in warehouses monitored by the Shanghai Futures Exchange fell 11.8 percent last week to 30,800 tonnes, their lowest since October 2007.
–Worries about a tight LME zinc market have receded as a large holding of 50 to 79 percent of stocks has been cut.
Courtesy: Kedia Commodities
Source: Commodityonline.com
