Zinc market under fresh selling; Support seen at 171.6
MCX Natural Gas may trade between 199.6-207.6 levels
MCX Nickel under fresh selling; Support seen at 882.6
MCX Aluminium likely to move in a range of 144.5-150.7
MCX Mentha Oil under long liquidation
Technically market is getting support at 412 and below same could see a test of 408.1 levels and resistance is now likely to be seen at 422.1, a move above could see prices testing 428.3.
Copper on MCX settled down 1.91% at 415.75 dropped on fresh selling tracking weakness from Shanghai where Copper prices hit its lowest in more than a year overnight and was down for a fifth straight day tracking a 2.6 percent drop in London copper overnight as U.S.-China trade tensions continue to weigh on metals prices.
MCX Copper prices got some support as the rupee weakened for the fifth consecutive session as it breached the 71.50 per dollar mark on Tuesday on concerns over worsening macroeconomic parameters amid rising in oil prices.
While market worries over US-Sino trade conflicts and a stronger US dollar accounted for the losses. With potential fresh tariffs from the US on $200 billion worth of Chinese goods, longs should remain cautious when they enter the market today.
Meanwhile falling inventories at London Metal Exchange and Shanghai Futures Exchange-approved warehouses are meanwhile keeping physical prices high in China, where copper premiums are currently at $84 a tonne, close to a near two-year high of $86 touched late last month. 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:
–Copper trading range for the day is 408.1-428.3.
–Copper dropped as trade dispute between China and the United States chilled factory activity in August and tempered appetite for metals.
–Falling inventories at London Metal Exchange and Shanghai Futures Exchange-approved warehouses are meanwhile keeping physical prices high in China.
Courtesy: Kedia Commodities
Source: Commodityonline.com
