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
MCX Aluminium under fresh buying; Support seen at 147
Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 89.97% to settled at 5433 while prices up 7.25 rupees.
Now MCX Zinc is getting support at 186.3 and below same could see a test of 180.8 level, And resistance is now likely to be seen at 195.9, a move above could see prices testing 200.
Zinc on MCX settled up 3.93% at 191.8 after stocks in Shanghai slid to the lowest in more than a decade and some speculators cancelled bearish positions. Zinc inventories in warehouses monitored by the Shanghai Futures Exchange slid 13.6 percent to 29,204 tonnes, the lowest since September 2007, weekly data showed.
China ditches blanket 30-50 pct production cuts on heavy industry in 28 northern cities, instead allows for local measures based on regional emission levels. Social inventories of refined zinc across Shanghai, Tianjin and Guangdong came in at 121,300 mt as of Friday September 28, up 2,000 mt from last Friday but down 5,400 mt from Tuesday.
Gains in zinc social inventories across the three regions after the holiday week as most smelters would keep normal production during that period. Smelters’ improved producing enthusiasm, weak downstream demand, and inflow of imports will grow inventories of the metal.
Rising zinc price and treatment charges (TCs) for zinc concentrate pulled up smelters’ profits to a healthy level, and this supported their producing enthusiasm. While transaction suspends during the upcoming National Day holiday, zinc smelters usually keep normal operation, which will increase zinc inventories.
On the demand, robust zinc price deterred downstream plants from purchasing, and thus led to weaker orders compared with a year ago. Some downstream mills have scheduled to halt production for 3-4 during the National Day holiday.
Trading Ideas:
–Zinc trading range for the day is 180.8-200.
–Zinc prices rose after stocks in Shanghai slid to the lowest in more than a decade and some speculators cancelled bearish positions.
–Social inventories of refined zinc across Shanghai, Tianjin and Guangdong came in at 121,300 mt up 2,000 mt.
–Smelters’ improved producing enthusiasm, weak downstream demand, and inflow of imports will grow inventories of the metal.
Courtesy: Kedia Commodities
Source: Commodityonline.com
