MCX Aluminium may trade in a range between 147.1-153.7
Nickel market under long liquidation; Support seen at 931
NCDEX Soyabean likely to move in a range of 3161-3263
NCDEX Ref Soy Oil under short covering
MCX Crude Palm Oil under short covering; Resistance seen at 594.3
Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 8.83% to settled at 3427 while prices down 3 rupees.
Now MCX Zinc is getting support at 172.7 and below same could see a test of 170.4 levels and resistance is now likely to be seen at 177.8, a move above could see prices testing 180.6.
Zinc on MCX settled down 1.69% at 175 on long liquidation as the US dollar rebounded on its robust personal consumption expenditures (PCE) price index for July, LME zinc slumped below the $2,500/mt level to an intraday low of $2,434/mt.
Shrinking LME zinc inventories provided limited support. Earlier this week Zinc 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 index rebounded for the first time in five trading days, while the Turkish lira and the Argentinian peso fell as a selloff in emerging market currencies gathered pace. Base metals dipped for the most part as LME zinc led the losses and closed 2% lower.
LME aluminium lost 1.3%, nickel dropped over 1%, lead fell 0.62%, copper declined 0.27%, while tin jumped 1.34%. SHFE nickel slid 1.2%, zinc decreased 0.54%, and aluminium went down 0.5%. Other base metals edged up.
Trading Ideas:
–Zinc trading range for the day is 170.4-180.6.
–Zinc dropped as the US dollar rebounded on its robust personal consumption expenditures (PCE) price index for July
–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
