MCX Nickel under fresh buying; Resistance seen at 903.7
MCX Aluminium expected to trade between 143.1-150.5 levels
MCX Mentha Oil under short covering; Support seen at 1694
NCDEX Turmeric may trade between 6560-6844 levels
NCDEX Jeera likely to move in a range of 19205-19785
Technically Copper market is getting support at 420 and below same could see a test of 415.7 levels and resistance is now likely to be seen at 429, a move above could see prices testing 433.7.
Copper on MCX settled up 1.13% at 424.40 gained in the line of expectation on short covering tracking firmness from LME Copper prices which were up by approximately 1% at the close of trading on Thursday September 6, propped up by a raft of fresh buying and a softer dollar index, while a downswing in aluminium prices came amid escalating US-Sino trade tensions.
Copper price continues to battle strong macroeconomic headwinds, namely the persistent trade rift between the United States and China, which is capping investment and driving prices lower.
However, concerns of China’s tough stance on trade disputes with the US continue to weigh on investors and the market. With more than 100,000 tonnes booked for removal since August 20, total on-warrant copper inventory remains at its lowest level since December 2017.
Appreciating by more than 1% over the morning, copper’s three-month price recovered losses made at Wednesday’s close, climbing back toward $6,000 per tonne while total on-warrant material remains at its lowest level since Dec 2017 at 146,600 tonnes.
Last night the US dollar index fell below 95 this followed after St Louis Federal Reserve Bank President James Bullard said on Wednesday that the US Fed should hold off on further interest rate hikes because the stance of monetary policy is already at neutral or possibly restrictive.
Concerns about new US trade tariffs on China also cast a shadow on the market. Base metals saw mixed trades. LME zinc grew 0.87% and copper increased 0.44%. Other base metals closed slightly lower.
Trading Ideas:
–Copper trading range for the day is 415.7-433.7.
–Copper rose as a weaker dollar underpinned prices even as bearish sentiment lingered amid a trade war between the United States and top metals consumer China.
–U.S. President Donald Trump said that the United States was not yet ready to come to an agreement over trade disputes with China but he said talks would continue.
–Traders await confirmation on whether Trump will impose levies on $200 billion more of Chinese imports, the wider metals market traded mixed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
