MCX Aluminium may trade in a range between 147.1-153.7
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
Zinc market under long liquidation; Support seen at 172.7
Technically Nickel market is under long liquidation as market has witnessed drop in open interest by 20.11% to settle at 4470.
Now Nickel is getting support at 931 and below same could see a test of 923.6 level, And resistance is now likely to be seen at 948.8, a move above could see prices testing 959.2.
Nickel on MCX settled down -0.67% at 938.40 on long liquidation tracking weakness from Shanghai nickel prices which fell furthest, tumbling as much as 2 percent to a two-week low of 107,690 yuan a tonne.
Also LME nickel tumbled to the $13,200/mt level before it pared some losses and closed at $13,310/mt on Thursday as growing inventories in China eroded upward momentum in SHFE nickel prices and fuelled bearish market sentiment.
Also the slowdown in China’s economic growth is structural, not cyclical, and is likely to sustain in the future, China’s productivity declined sharply after the global financial crisis in 2008. The rate of growth in productivity fell from 4% to 1% as innovation and technological advancements is a slow, gradual process.
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.
Now day ahead the market should monitor key data today including China’s official purchasing managers index (PMI) for August, German retail sales last month, and the University of Michigan consumer sentiment index this month.
Trading Ideas:
–Nickel trading range for the day is 923.6-959.2.
–Nickel prices ended with losses as risk aversion eased, the market expects to see limited upward momentum.
–Indonesia will extend a special mining permit for PT Freeport Indonesia for another month to September, Energy and Mineral Resources Minister Ignasius Jonan told.
–The eurozone economic sentiment index fell to a one-year low of 111.6 in August from 112.1 in July, data from the European Commission showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
