Nickel market under fresh selling; Resistance seen at 896.6
MCX Zinc under fresh selling; Support seen at 172.8
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 Aluminium market is under short covering as market has witnessed drop in open interest by 9.36% to settled at 3149 while prices up 1.15 rupees.
Now MCX Aluminium is getting support at 146.2 and below same could see a test of 145 levels and resistance is now likely to be seen at 148.3, a move above could see prices testing 149.2.
Aluminium on MCX settled up 0.79% at 147.2 following news that workers would extend their strike at Alcoa’s alumina operations in Western Australia and that European consumers would avoid signing supply agreements in Berlin with Rusal for 2019.
Workers at Alcoa’s alumina and bauxite operations in Western Australia voted to continue a strike. Alcoa has said the strike cut production of alumina, used to smelt aluminium, by only about 15,000 tonnes in August.
Higher alumina prices could raise the cost of aluminium. The discount of cash aluminium over the three-month contract rose to the highest since October 2015 at $37.50. Primary aluminium inventories across major consumption areas in China shrank on the week as downstream consumers restocked when prices dipped over the week.
As of now, stocks across eight consumption areas, including SHFE warrants, fell by some 33,000 mt from last Thursday to stand at 1.714 million mt, data showed. Inventories of aluminium billet across major consumption areas in China continued to grow in the week as demand in the construction extrusion sector took a hit despite the traditional high season.
Stocks of 6063 aluminium billet across five major consumption areas increased by 12,100 mt from a week earlier to stand at 117,900 mt as of now, data showed. Growth of some 15,300 mt in stocks in Foshan, Guangdong province accounted for the increase.
Trading Ideas:
–Aluminium trading range for the day is 145-149.2.
–Aluminium gained following news that workers would extend their strike at Alcoa’s alumina operations in Western Australia.
–Prices also remained supported European consumers would avoid signing supply agreements in Berlin with Rusal for 2019.
–The discount of cash aluminium over the three-month contract rose to the highest since October 2015 at $37.50.
Courtesy: Kedia Commodities
Source: Commodityonline.com
