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 Zinc market is under short covering as market has witnessed drop in open interest by 12.8% to settled at 3835 while prices up 2.15 rupees.
Now MCX Zinc is getting support at 175.2 and below same could see a test of 173.7 levels and resistance is now likely to be seen at 178.5, a move above could see prices testing 180.3.
Zinc on MCX settled up 1.23% at 176.50 gained on short covering tracking firmness from LME Zinc whcih led on the upside with a 0.9% rebound propped up by a raft of fresh buying and a softer dollar index.
A weaker dollar underpinned prices even as bearish sentiment lingered amid a trade war between the United States and top metals consumer China. The dollar sagged as the pound led a bounce in European currencies, making the greenback-priced commodities cheaper for importers holding other currencies.
Sentiment was buoyed by the weaker U.S. dollar, which has been weighing on investor appetite in recent trading sessions. However, with the ongoing turmoil in emerging markets, plus weakness in the Chinese equity markets, the metals sector may struggle to hold their gains in coming days.
U.S. President Donald Trump said on Wednesday that the United States was not yet ready to come to an agreement over trade disputes with China but he said talks would continue. The world’s two largest economies have slapped tariffs on $50 billion of each other’s goods in a tit-for-tat trade war, and Trump is considering imposing tariffs on another $200 billion in Chinese imports.
Base metals saw mixed trades. LME zinc grew 0.87% and copper increased 0.44%. Other base metals closed slightly lower. While a day ahead market participants should monitor data including the US nonfarm payroll employment in August, China’s foreign exchange reserves, and the eurozone’s GDP for the second quarter.
Trading Ideas:
–Zinc trading range for the day is 173.7-180.3.
–Zinc gains as a subdued greenback aided gains offsetting some concerns over the threat of a ramp up in the U.S. China trade war.
–Resumption after maintenance raised output of refined zinc across Chinese smelters to 418,700 mt in August, up 2.52% from July, but down 6.11% from a year ago.
–Total output in the first eight months of the year gained 0.66% on the year and stood at 3.52 million mt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
