Aluminium market under short covering; Support seen at 146.2
Nickel market under fresh selling; Resistance seen at 896.6
MCX Cotton market under short covering; Support seen at 22736.6
MCX Cardamom under fresh buying; Support Seen at 1438.4
NCDEX Jeera under fresh selling; Resistance seen at 19555
Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 40.13% to settled at 5374 while prices down 2.65 rupees.
Now MCX Zinc is getting support at 172.8 and below same could see a test of 171.6 levels and resistance is now likely to be seen at 175.7, a move above could see prices testing 177.4.
Zinc on MCX settled down 1.5% at 173.85 amid concerns of China’s tough stance on trade disputes with the US continue to weigh on investors and the market. Zinc premiums shot up to four-year highs in China after a large import arbitrage encouraged deals at premiums up to and above $200 per tonne.
Market readying for annual contract discussions Chinese zinc premiums soar Zinc ingot premiums have shot up in Shanghai with the arbitrage swinging to its highest in a year. Spot treatment charges (TCs) for zinc concentrate have risen to their highest level since October 2016 while the market continues to shift from deficit to balance.
At the same time, Chinese tariffs on United States-origin metal concentrate shipments could disrupt flows of such material to the Asian nation. China announced early last month that it will apply an import tariff of 25% on zinc concentrate and a rate of 10% on lead concentrate originating from the US.
U.S. job growth accelerated in August and wages notched their largest annual increase in more than nine years, strengthening views that the economy was so far weathering the Trump administration’s escalating trade war with China.
The Labor Department’s closely watched employment report published on Friday also showed slack in the jobs market was rapidly diminishing, with a broader measure of unemployment falling to a level not seen since 2001.
Trading Ideas:
–Zinc trading range for the day is 171.6-177.4.
–Zinc dropped amid concerns of China’s tough stance on trade disputes with the US continue to weigh on investors and the market.
–Further downside seen limited given current low inventories in major domestic markets and in the Shanghai bonded area.
–Zinc premiums shot up to four-year highs in China after a large import arbitrage encouraged deals at premiums up to and above $200 per tonne.
Courtesy: Kedia Commodities
Source: Commodityonline.com
