Mentha Oil market under long liquidation; Support seen at 1745.6
MCX Zinc likely to trade in range between 165.5-173.9
MCX Cotton under long liquidation
MCX Cardamom under long liquidation; Resistance seen at 1450.3
NCDEX Jeera likely to move in a range of 19450-20380
Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 4.79% to settle at 4177.
Now MCX Aluminium is getting support at 144.2 and below same could see a test of 142.9 levels and resistance is now likely to be seen at 147.2, a move above could see prices testing 148.9.
Aluminium on MCX settled down -0.44% at 145.45 tracking weakness from LME aluminium prices which slipped 0.6 percent to $2,052.50 a tonne also pressure seen as Indian rupee rallied the most in 18 months on Wednesday recovered after an official said the government may announce measures to support the currency after a planned review of the economy by Prime Minister Narendra Modi this weekend.
While sentiments will remain firm as Aluminium prices have a bullish base to climb steadily higher throughout 2019, no matter what happens with the US sanctions on Rusal. Demand remains healthy and will continue to expand.
The input costs are increasing and the prices should bear some relationship to this. Upstream alumina prices have hit record highs this year following a force majeure at major alumina refinery Alunorte and strikes by Alcoa workers at Pinjarra. Supply tightness is showing no signs of easing and is expected to reflect in aluminium prices.
The United States Treasury placed sanctions on Russian aluminium producer UC Rusal in April, forcing consumers to look elsewhere for aluminium supply.
The official deadline for the US to review the sanctions is October 23, but a number of market participants note that if there is no resolution by the end of September, Rusal could begin to cut production.
For today market participants should monitor data such as the US retail sales for August, the University of Michigan consumer confidence index for September, and China’s total retail sales of consumer goods last month.
Trading Ideas:
–Aluminium trading range for the day is 142.9-148.9.
–Aluminium dropped on expectations provincial curbs could remove less supply than the 30 percent cuts stipulated in a draft central government document released last month.
–Aluminium pricing tensions mount as alumina surges again.
–China plans to raise value-added tax (VAT) rebates on exported aluminium products from September 15.
Courtesy: Kedia Commodities
Source: Commodityonline.com
