MCX Nickel may trade between 934.2-961.2 levels
MCX Zinc may trade in range between 174.8-180 levels
MCX Aluminium likely to move in a range of 146.7-154.3
MCX Mentha Oil under short covering; Support seen at 1710.4
Natural Gas market under fresh buying; Support seen at 200.6
Technically Copper market is getting support at 420.1 and below same could see a test of 418.1 levels and resistance is now likely to be seen at 424.6, a move above could see prices testing 427.1.
Copper on MCX settled down 0.31% at 421.95 tracking weakness from LME copper which edged down 0.2 percent to $6,077 a ton, while in Shanghai copper was trading 0.6 percent lower.
Copper prices have recovered from a recent rout, but the possibility of the trade dispute between Washington and Beijing escalating and its potential to crimp demand in China, the world’s top consumer, is expected to cap gains.
Meanwhile striking workers at state-owned Codelco’s Andina copper mine have rejected their employers’ latest contract offer, the company and union said on Wednesday. Also Indonesia will extend a special mining permit for PT Freeport Indonesia for another month to September, Energy and Mineral Resources Minister Ignasius Jonan told reporters on Wednesday.
Last night the US dollar index slumped to the lowest in four weeks, as investors lost confidence in the dollar after the US and Mexico reached a preliminary agreement to change parts of the NAFTA. Base metals closed mixed.
Where LME nickel lost over 1.6%, tin fell 0.75%, copper slid 0.65%, zinc inched down, while aluminium jumped 1.13%, and lead gained 0.53%. SHFE zinc rose 0.57%, lead increased 0.55%, aluminium grew 0.13%, while nickel lost 0.35%, copper dropped 0.31%, and tin edged down.
The US GDP increased at a 4.2% annualised rate for the second quarter, stronger than the expected 4% growth, notching its best performance in nearly four years. While The country’s pending home sales index decreased 0.7% to 106.2 in July, compared with an expected increase of 0.3%, according to the NAR.
Trading Ideas:
–Copper trading range for the day is 418.1-427.1.
–Copper dropped pressured by a recovery in the dollar and worries over softer demand from top consumer China.
–China’s economy is facing increasing risks in the second half of the year and policymakers need to step up efforts to hit key development goals.
–Amid an escalating trade dispute with Washington, China’s economy showed signs of further cooling last month with investment growth at a record-low.
Courtesy: Kedia Commodities
Source: Commodityonline.com
