MCX Crude Oil may trade between 5319-5643 levels
MCX Natural Gas likely to move in a range of 237.4-252.6
MCX Copper likely to move in a range of 454.1-466.7
MCX Nickel likely to move in a range of 928.6-968.2
MCX Aluminium may trade between 150-154.4 levels
Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 21.48% to settled at 4936 while prices down 6.7 rupees.
Now MCX Zinc is getting support at 193.4 and below same could see a test of 190.6 level, And resistance is now likely to be seen at 201.1, a move above could see prices testing 206.
Zinc on MCX settled down 3.3% at 196.20 on long liquidation tracking weakness from LME Zinc prices where prices fell on trade and inflation worries, although it had earlier risen back towards a three-month high reached last week on shrinking inventories and smelter cuts in China.
Support in the earlier session seen after Zinc inventories in LME-registered warehouses fell to 194,575 tonnes from more than 250,000 tonnes in August and are nearing 10-year lows. Also Stockpiles in Shanghai Futures Exchange storehouses at 29,204 tonnes are the smallest since 2007.
Production cutbacks at China’s zinc smelters in response to tighter environmental checks and weaker profits have tightened supply. Also weighing on zinc were lingering worries that trade tensions will sap growth.
The worries, coupled with rising US bond yields, pushed world shares down to a three month low. Last night the euro and pound rose underpinned by optimism for a Brexit deal, while the dollar lost ground against a basket of currencies even as US bond yields hovered at multiyear peaks.
The euro’s gains were limited by worries about the sustainability of Italy’s public finances, though Italian Economy Minister Giovanni Tria reiterated on Wednesday that the government would do everything in its power to regain the confidence of financial markets.
Now day ahead some data to monitor today include China’s total social financing (TSF) and M2 money supply in September, US consumer inflation in September, weekly jobless claims and crude inventories.
Trading Ideas:
–Zinc trading range for the day is 190.6-206.
–Zinc eased on profit booking after prices as output cuts in China buoyed the market.
–Zinc inventories in LME-registered warehouses fell below 200,000 tonnes from more than 250,000 tonnes in August and are nearing 10-year lows.
–Stockpiles in Shanghai Futures Exchange storehouses at 29,204 tonnes are the smallest since 2007.
Courtesy: Kedia Commodities
Source: Commodityonline.com
