MCX Zinc under Fresh buying; Support seen at 186.3
Short covering seen in MCX Copper; Resistance seen at 455.8
MCX Natural Gas under long liquidation
MCX Crude Oil under fresh buying; Resistance seen at 5387
MCX Nickel under fresh buying; Resistance seen at 924.8
Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 17.52% to settled at 2643 while prices up 1.6 rupees.
Now MCX Aluminium is getting support at 147 and below same could see a test of 144.6 level, And resistance is now likely to be seen at 151.7, a move above could see prices testing 154.
Aluminium on MCX settled up 1.08% at 149.4 tracking LME aluminium gained 1.6 percent to end at $2,062 a tonne, erasing losses seen after China decided not to impose blanket cuts on industrial output in 28 northern cities this winter.
The production cuts are to be determined by local authorities and the market expects less restrictions on aluminium supply. China’s alumina exports are likely to boom in September as large numbers of orders made in July-August have yet to be fulfilled.
Over 400,000 mt of alumina was ordered by buyers overseas in July-August. Data from the Customs showed that only 134,000 mt was exported for the same months. The gap is expected to be fulfilled in September-October.
Cooling stockpiling enthusiasm among international consumers, however, is expected to dwindle down the export volume in September. Aluminium inventories in warehouses approved by the London Metal Exchange fell below 1 million tonnes for the first time since May 2008, LME data showed.
Aluminium stocks dropped 6,850 tonnes to 999,925 tonnes, according to the data, which tracks warehouse movements with a one-day lag. Healthy demand has sent LME aluminium stocks sliding in recent years after touching a record peak of 5,492,000 tonnes on Feb. 15, 2014.
The union at Alcoa’s aluminium operations in the state of Western Australia said it was meeting the company again on Wednesday to try to resolve a strike that has lasted more than six weeks, after the firm last week revised an earlier offer.
Trading Ideas:
–Aluminium trading range for the day is 144.6-154.
–Aluminium gained tracking LME aluminium gained 1.6 percent erasing losses seen after China decided not to impose blanket cuts on industrial output this winter.
–The production cuts are to be determined by local authorities and the market expects less restrictions on aluminium supply.
–China’s alumina exports are likely to boom in September as large numbers of orders made in July-August have yet to be fulfilled.
Courtesy: Kedia Commodities
Source: Commodityonline.com
