Copper market under fresh buying; Support seen at 421.3
MCX Aluminium likely to move in a range of 146.8-151.4
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 Nickel is getting support at 905 and below same could see a test of 897.7 level, And resistance is now likely to be seen at 916.8, a move above could see prices testing 921.3.
Nickel on MCX settled up 0.33% at 912.30 as support seen from weakness from Indian rupee which continues to get beaten down against the US dollar.
While LME nickel prices slipped 0.4 percent to $12,755 a tonne, having dipped to the weakest since late January, and extending Friday’s 3.7 percent slide as pressure seen another fall in construction steel rebar prices in Shanghai after their weakest weekly performance since late March.
Meanwhile China’s manufacturing activity grew at the slowest pace in more than a year in August, with export orders shrinking for a fifth month and employers cutting more staff, a private survey showed on Monday.
Also China is still determined to reform and wants to work with all parties to build an open world economy, Chinese President Xi Jinping said on Sunday, reiterating Beijing’s message amid a bitter trade war with Washington.
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:
–Nickel trading range for the day is 897.7-921.3.
–Nickel recovered on short covering after pressure seen as after large amount of Norilsk nickel entered the domestic market while downstream demand dropped.
–LME nickel prices traded at $12,790 a tonne, having dipped to the weakest since late January, and extending Friday’s 3.7 percent slide.
–China is still determined to reform and wants to work with all parties to build an open world economy, reiterating Beijing’s message amid a bitter trade war with Washington.
Courtesy: Kedia Commodities
Source: Commodityonline.com
