Zinc market under fresh selling; Support seen at 171.6
MCX Natural Gas may trade between 199.6-207.6 levels
Copper likely to trade in a range between 408.1-428.3
MCX Aluminium likely to move in a range of 144.5-150.7
MCX Mentha Oil under long liquidation
Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 12.25% to settled at 14290 while prices down 20.4 rupees.
Now MCX Nickel is getting support at 882.6 and below same could see a test of 873.2 level, And resistance is now likely to be seen at 905.9, a move above could see prices testing 919.8.
Nickel on MCX settled down 2.24% at 891.90 on long liquidation tracking weakness from LME nickel prices which slumped to a low of $12,375/mt fell to their lowest point since January down by 2.5% amid sharp drops in copper, zinc and lead while strength in the United States dollar continued to put pressure on base metals.
Market concerns over a trade war and a surge in supplies also weighed on the contract. While broad risk-off sentiment continued to affect commodity investment, volatile emerging market currencies and renewed trade disagreements added further downward pressure to the base metals complex, while equity markets continued to trail lower against the surging dollar.
Investors have turned more risk off since Monday on fears that the trade dispute between the US and its major trading partners undermines manufacturing growth, after the release of IHS Markit’s disappointing manufacturing PMIs in Europe and the Caxin manufacturing PMI in China for August.
Last night the US dollar index rallied to the highest since August 21, at 95.73, and closed at 95.41. Concerns over an escalating trade conflict between the US and China battered emerging market currencies and prompted investors to seek safe harbour of the dollar. Now a day ahead the market should monitor key data today including China’s Caixin service PMI for August, the eurozone retail sales, as well as the US trade balance in July.
Trading Ideas:
–Nickel trading range for the day is 873.2-919.8.
–Nickel dropped weighed down by an increase in nickel ore inventory at China and rising stainless steel inventory.
–Shanghai nickel fell for a fourth day, ending down 2.4 percent at 103,250 yuan a tonne after earlier hitting 103,140 yuan, its lowest since May 10.
–Global manufacturing activity took a hit from weak orders in August, surveys showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
