MCX Nickel may trade between 934.2-961.2 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
MCX Copper may trade in a range between 418.1-427.1
Natural Gas market under fresh buying; Support seen at 200.6
Technically MCX Zinc is getting support at 176.4 and below same could see a test of 174.8 levels and resistance is now likely to be seen at 179, a move above could see prices testing 180.
Zinc on MCX settled up 0.17% at 178 as support seen after Indian rupee crashed more than 50 paise against the US dollar to hit an all-time low at 70.64 after the Reserve Bank of Indian released its Annual Report 2017-2018 between 10 am to 11 am today.
In the last hour of foreign exchange trading, the rupee collapsed to a fresh all-time low of 70.64, down 53 paise against US dollar. While LME zinc inched down to close at $2,515/mt, while the 20- and five-day moving averages are expected to continue to provide support. Shrinking LME zinc inventories will also bolster prices.
As investors added their longs, the SHFE contract surged to a high of 21,365 yuan/mt and closed at that level. 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:
–Zinc trading range for the day is 174.8-180.
–Zinc gained as investors added their longs amid shrinking LME zinc inventories will bolster prices.
–Available products in Guangdong were also tight, with limited arrivals from smelters.
–In anticipation of higher zinc prices, smelters did not hurry to destock, given current low inventories of zinc ingots.
Courtesy: Kedia Commodities
Source: Commodityonline.com
