MCX Cotton under fresh buying; Support seen at 22744
MCX Cardamom may trade between 1388.6-1438.6 levels
Fresh selling seen in NCDEX Jeera; Resistance seen at 19730
NCDEX Turmeric under fresh selling; Resistance seen at 6816
NCDEX Mustard Seed likely to move in a range of 4051-4135
Technically Zinc market is under short covering as market has witnessed drop in open interest by 9.93% to settled at 4398 while prices up 1.05 rupees.
Now MCX Zinc is getting support at 173 and below same could see a test of 171.5 levels and resistance is now likely to be seen at 176.1, a move above could see prices testing 177.7.
Zinc on MCX settled up 0.61% at 174.35 recovered from the day’s low on short covering as support seen from Rupee weakness while LME zinc, which is down 17.3 percent year-to-date, lost 2.1 percent amid simmering U.S.-China trade tensions.
A looming deadline in the U.S.-China trade conflict kept the dollar near two-week highs on Wednesday, inflicting fresh losses on emerging markets and sending world stocks lower for the fourth day in a row.
The weakness in the metals continues, as well as sentiment remaining weak on the trade disputes, investors are now getting nervous about the developing situations in a number of emerging markets.
Collectively these are strong headwinds, but with metals prices already low and with the funds short, you have to wonder how much further the sell-off can go.
These are dangerous waters as US President Donald Trump could push his “America First” policy too far and trigger a financial crisis, while equally he could announce that a trade agreement is in the making and send everything into reverse.
Last night the US dollar index edged down 0.31% to close at 95.1 as the pound jumped after it was reporter that Germany was prepared to make a major compromise on Brexit. From data point the Caixin China services PMI slipped to 51.5 in August from 52.8 in July. The reading is the lowest in ten months.
Trading Ideas:
–Zinc trading range for the day is 171.5-177.7.
–Zinc recovered as dollar sagged, pressured by the pound which rose after fears of Britain leaving the European Union with no comprehensive agreement faded.
–US President Donald Trump’s proposed tariffs on $200 billion of Chinese goods could take effect as soon as this week when a public comment period concludes.
–Investors should also monitor US-Canada trade negotiations this week after the two sides failed to reach an agreement last week.
Courtesy: Kedia Commodities
Source: Commodityonline.com
