MCX Nickel may trade between 881.3-914.3 levels
MCX Aluminium likely to move in a range of 144.3-154.5
MCX Mentha Oil may trade between 1776.1-1832.5 levels
MCX Cotton under fresh buying; Support seen at 23010
MCX Cardamom under fresh buying; Resistance seen at 1478.4
Technically Copper market is under short covering as market has witnessed drop in open interest by 3.88% to settled at 18895.
MCX Copper is getting support at 423.3 and below same could see a test of 419.7 levels and resistance is now likely to be seen at 429, a move above could see prices testing 431.1.
Copper on MCX settled up 0.99% at 426.80 as support seen after Indian Rupee crashed below the 72-mark to end at a life-low of 72.45 against the US dollar on growing fears of contagion from an emerging-market rout and escalation of a global trade war.
While LME Copper prices fell on Monday after U.S. President Donald Trump threatened to impose tariffs on virtually all Chinese imports into the United States, escalating the trade dispute and stoking fears of weaker demand for industrial metals.
Benchmark LME copper closed 0.4 percent down at $5,910 a tonne, a loss of about 20 percent since hitting a 4-1/2 year high of $7,348 in June. It crashed to a 14-month low of $5,773 on Aug. 15.
In August, China’s trade surplus with the United States widened to a record even as the country’s export growth slowed slightly, an outcome that could push President Trump to turn up the heat on Beijing in their cantankerous trade dispute.
Also China’s producer inflation cooled in August amid softening domestic demand, pointing to a steadily slowing growth in the world’s second-biggest economy and largest copper user. On the trade front, the U.S. President Donald Trump threatened on Friday that his administration would impose new tariffs on $267 billion of Chinese goods.
Now market participants should monitor data including China’s social financing and its M2 money supply for August, the eurozone ZEW economic confidence in September, as well as the US warehouse inventories for July.
Trading Ideas:
–Copper trading range for the day is 419.7-431.1.
–Copper gained on Rupee weakness despite of after U.S. President Donald Trump threatened to impose tariffs on virtually all Chinese imports into the United States.
–China’s imports of unwrought copper and copper semis in August declined 6.7% from July to stand at 420,000 mt, showed China Customs data.
–Copper stocks across Shanghai bonded areas shrank 20,300 mt from a week ago to 453,500 mt marking the fifth consecutive week of decline.
Courtesy: Kedia Commodities
Source: Commodityonline.com
