Mentha Oil market under long liquidation; Support seen at 1688
Aluminium market is under short covering; Support seen at 146.9
Nickel market under short covering; Support seen at 923.9
Copper market under fresh buying; Support seen at 444.7
MCX Cotton under short covering; Resistance seen at 22366.6
Technically Zinc market is under short covering as market has witnessed drop in open interest by 11.12% to settled at 4245 while prices up 5.55 rupees.
Now MCX Zinc is getting support at 177.7 and below same could see a test of 173.1 levels and resistance is now likely to be seen at 185.3, a move above could see prices testing 188.3.
Zinc on MCX settled up 3.14% at 182.3 on the back of relief that the latest tariffs in the Sino-U.S. trade conflict were set at lower levels than some had feared and supported by a shortage of the metal in top consumer China.
LME zinc stocks have dropped about 15 percent in the past month to 213,650 tonnes. Zinc imports to China have been profitable since late August, according to calculations.
The global zinc market deficit deepened to 32,500 tonnes in July from a deficit of 14,200 tonnes in June, data from the International Lead and Zinc Study Group (ILZSG) showed. The June data was revised after it showed a surplus of 3,000 tonnes previously.
In the first seven months of the year, zinc saw a deficit of 42,000 tonnes compared to a deficit of 253,000 tonnes in the same period last year. Easing shortage of global zinc concentrate supply and relatively high LME inventories undermined fundamentals of LME zinc and kept it more susceptible to macroeconomic turmoil.
Meanwhile, low domestic inventories firmed SHFE zinc. Social stocks across Shanghai, Tianjin and Guangdong held stable at about 110,000 mt since July and inventories in Shanghai-bonded areas continued to decline as an import arbitrage window has been open since mid-August.
Supply of domestic cargoes tightened as tumbles in zinc prices in mid-August jeopardised production enthusiasm across smelters.
Trading Ideas:
–Zinc trading range for the day is 173.1-188.3.
–Zinc rose on the back of relief that the latest tariffs in the Sino-U.S. trade conflict were set at lower levels than some had feared.
–LME zinc stocks have dropped about 15 percent in the past month to 213,650 tonnes, zinc imports to China have been profitable since late August.
–The global zinc market deficit deepened to 32,500 tonnes in July from a deficit of 14,200 tonnes in June, data from the ILZSG showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
