MCX Zinc under Fresh buying; Support seen at 186.3
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
MCX Aluminium under fresh buying; Support seen at 147
Technically Copper market is under short covering as market has witnessed drop in open interest by 6.65% to settled at 10986 while prices up 4.6 rupees.
Now MCX Copper is getting support at 448.5 and below same could see a test of 443.9 level, And resistance is now likely to be seen at 455.8, a move above could see prices testing 458.5.
Copper on MCX settled up 1.03% at 452.95 tracking firmness in LME Copper rose 1.2 percent to close at $6,258 a tonne as speculators cancelled bearish positions. U.S. consumer spending increased steadily in August, supporting expectations of solid economic growth in the third quarter, while a measure of underlying inflation remained at the Federal Reserve’s 2 percent target for a fourth straight month.
Report from the Commerce Department should allay fears of the economy overheating and likely keeps the U.S. central bank on a gradual path of interest rate increases. New industrial data for August suggests China’s industrial companies are coming under strain from the trade war with the US as profit growth decelerated for the fourth month in a row.
Industrial profits grew by 9.2% to 519.69 billion yuan ($75.57 billion) last month, with the growth rate down from 16.2% a month earlier, according to data published Thursday by the National Bureau of Statistics (NBS).
Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.9 percent from last Friday, the exchange said. The global world refined copper market showed a 45,000 tonnes deficit in June, compared with a 50,000 tonnes deficit in May, the International Copper Study Group (ICSG) said in its latest monthly bulletin.
For the first 6 months of the year, the market was in a 51,000 tonnes deficit compared with a 148,000 tonnes deficit in the same period a year earlier, the ICSG said. World refined copper output in June was 1.95 million tonnes, while consumption was 2.00 million tonnes.
Trading Ideas:
–Copper trading range for the day is 443.9-458.5.
–Copper prices rallied tracking firmness in LME Copper rose 1.2 percent to close at $6,258 a tonne as speculators cancelled bearish positions.
–LME copper inventories inched slightly higher to 212,925 tonnes, but were still near the lowest since January.
–China’s underlying demand for refined copper remained resilient, driving global copper demand.
Courtesy: Kedia Commodities
Source: Commodityonline.com
