Copper market under fresh buying; Support seen at 421.3
MCX Nickel may trade between 897.7-921.3 levels
MCX Mentha Oil under long liquidation
Natural Gas likely to trade between 199.5-208.7 levels
Cotton market under fresh buying;Support seen at 22676
Technically MCX Aluminium is getting support at 147.8 and below same could see a test of 146.8 level, And resistance is now likely to be seen at 150.1, a move above could see prices testing 151.4.
Aluminium on MCX settled down 1% at 148.60 on long liquidation tracking weakness from LME Aluminium prices which shed 1.3 percent to $2,097 a tonne as a trade dispute between China and the United States chilled factory activity in August and tempered appetite for metals.
China’s Ministry of Commerce has called domestic aluminium foil makers to a meeting in Beijing on Monday to discuss an anti-dumping probe launched by Mexico, people with direct knowledge of the matter told Reuters.
Sentiments remain firm as primary aluminium inventories across major consumption areas in China shrank over the weekend as limited deliveries arrived. As of Monday September 3, stocks across eight consumption areas, including SHFE warrants, decreased by some 12,000 mt from Thursday to stand at 1.735 million mt, data showed.
Last night the US dollar inched up 0.01% to close at 95.1, following news that manufacturing activity in the UK slowed more than expected in August. Base metals, except for lead, dropped across the board.
LME aluminium slump 1.4%, copper lost 0.7%. Zinc went down 0.91%, nickel slid 0.86%, and aluminium closed 0.81% lower. From data points China’s Caixin manufacturing PMI fell to the lowest since June 2017, from 50.8 in July to 50.6 in August.
Day ahead the market should monitor key data today including the US Markit as well as ISM manufacturing PMI for August. Governor of the BoE, Mark Carney, will also speak about the BoE’s decision to raise interest rates in August and its latest inflation reports.
Trading Ideas:
–Aluminium trading range for the day is 146.8-151.4.
–Aluminium prices dropped given a strengthened US dollar and outperformed US consumer sentiment data.
–China’s Ministry of Commerce has called domestic aluminium foil makers to a meeting in Beijing to discuss an anti-dumping probe launched by Mexico.
–Primary aluminium inventories across major consumption areas in China shrank over the weekend as limited deliveries arrived.
Courtesy: Kedia Commodities
Source: Commodityonline.com
