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
MCX Copper may trade in a range between 418.1-427.1
Natural Gas market under fresh buying; Support seen at 200.6
Technically Nickel market is getting support at 939.5 and below same could see a test of 934.2 level, And resistance is now likely to be seen at 953, a move above could see prices testing 961.2.
Nickel on MCX settled down 0.69% at 944.70 despite Indian rupee crashed more than 50 paise against the US dollar to hit an all-time low at 70.64 while pressure seen on the possibility of the trade dispute between the Washington and Beijing escalating and its potential to crimp demand in China, the world’s top consumer, is expected to cap gains.
Domestic demand in China, though slowing already, is likely to be supported by interest rate cuts, easier credit and infrastructure projects. The Chinese government’s decision to impose a 25 percent duty on U.S. copper scrap means local consumers will buy metal on the global market. “The tax on scrap is one reason behind the draw on stocks in Shanghai,” a fund manager trading copper said.
The copper price in Shanghai is at a large premium to the LME, even taking into account shipping costs and taxes.” 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.
Trading Ideas:
–Nickel trading range for the day is 934.2-961.2.
–Nickel ended with losses on concerns about an ongoing wobble in China’s economy.
–A cargo of high-grade NPI was heard traded at 1,100 yuan/mtu this week, 16 yuan/mtu higher than offers for refined nickel.
–Indonesia will extend the special mining permit for PT Freeport Indonesia for another month to September.
Courtesy: Kedia Commodities
Source: Commodityonline.com
