Mentha Oil market under long liquidation; Support seen at 1688
Nickel market under short covering; Support seen at 923.9
Zinc market under short covering; Support seen at 177.7
Copper market under fresh buying; Support seen at 444.7
MCX Cotton under short covering; Resistance seen at 22366.6
Technically Aluminium market is under short covering as market has witnessed drop in open interest by -29.71% to settled at 2427.
Now MCX Aluminium is getting support at 146.9 and below same could see a test of 144.6 levels and resistance is now likely to be seen at 150.6, a move above could see prices testing 152.
Aluminium on MCX settled up 2.23% at 149.05 as market sentiment improved after Chinese authorities said it plans to cut corporate tax. The dollar struggled near two-month lows, while the yen also sagged on reduced safe-haven demand amid the switch in investors’ view that the Sino-U.S. trade conflict would be less damaging to global growth than initially feared.
Global economic growth has peaked in the face of rising trade frictions and emerging market turbulence, the OECD said, as it trimmed its earlier outlook. Global primary aluminium output rose to 5.485 million tonnes in August from revised 5.476 million tonnes in July, data from the International Aluminium Institute (IAI) showed.
Estimated Chinese production rose to 3.12 million tonnes in August from revised 3.115 million tonnes in July, it added. Primary aluminium inventories across major consumption areas in China extended weekend losses in the week as consumption improved.
Stocks across eight consumption areas, including SHFE warrants, decreased by some 53,000 mt from previous week to stand at 1.623 million mt as of now.
Stocks of 6063 aluminium billet across five major consumption areas in China shrank by 4,900 mt from a week earlier to stand at 116,200 mt, data showed. The decline came after five consecutive weeks of increases.
The ShFE aims to release a draft of an alumina futures contract in late 2018 or early 2019, after requests from the market to create a price benchmark for the feedstock used to make aluminium, an official said.
Trading Ideas:
–Aluminium trading range for the day is 144.6-152.
–Aluminium gained as market sentiment improved after Chinese authorities said it plans to cut corporate tax.
–Global primary aluminium output rose to 5.485 million tonnes in August from revised 5.476 million tonnes in July, data from the IAI showed.
–Primary aluminium inventories across major consumption areas in China extended weekend losses in the week as consumption improved.
Courtesy: Kedia Commodities
Source: Commodityonline.com
