MCX Natural Gas may trade between 199.6-207.6 levels
Copper likely to trade in a range between 408.1-428.3
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 Zinc market is under fresh selling as market has witnessed gain in open interest by 23.43% to settled at 4883 while prices down 3.15 rupees.
Now Zinc is getting support at 171.6 and below same could see a test of 169.9 levels and resistance is now likely to be seen at 176.1, a move above could see prices testing 178.9.
Zinc on MCX settled down 1.79% at 173.30 on fresh selling tracking weakness from LME zinc prices which slumped below the $2,400/mt level with pressure form a higher US dollar.
The dollar index is rising again having rebounded on August 31 and was recently quoted at 95.20. The stronger dollar is once again putting downward pressure on metals prices.
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.
Sentiments remain weak after the news from CIBC which sees near-term concerns for the mining sector; lowers copper and zinc forecasts on slower demand due to the trade barriers and tariffs.
Also the global zinc market saw a surplus of 3,000 tonnes in June from a deficit of 26,000 tonnes in May, data from the International Lead and Zinc Study Group showed on Monday. 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:
–Zinc trading range for the day is 169.9-178.9.
–Zinc dropped amid growing concerns over escalating international trade disputes
–China’s Caixin manufacturing purchasing manager’s index (PMI) fell to the lowest since June 2017, from 50.8 in July to 50.6 in August.
–Imports further grew social inventories of zinc over the weekend, as of Monday September 3.
Courtesy: Kedia Commodities
Source: Commodityonline.com
