MCX Nickel under fresh selling; Support seen at 911.1
MCX Menthol Oil under fresh selling; Resistance seen at 1723.4
MCX Cotton under long liquidation
MCX Cardamom under short covering
Natural Gas market under long liquidation; Support seen at 234.7
Technically Aluminium market is getting support at 148.5 and below same could see a test of 147.4 level, And resistance is now likely to be seen at 150.8, a move above could see prices testing 152.
Aluminium on MCX settled down 0.63% at 149.40 tracking weakness from London Metal Exchange base metal prices were lower across the board on Tuesday October 16, with aluminium’s three-month price largely unaffected by a 70,000 tonne delivery.
Following the largest inflow since April this morning, total LME aluminium stocks are now sitting just below 1 million tonnes after 70,775 tonnes was delivered into LME-listed warehouses in Asia. Prior to this, total aluminium stocks were at their lowest level since 2005, with persistent stock drawdowns amid uncertainty in the aluminium market over US-imposed sanctions on Russian aluminium producer UC Rusal.
The rest of the complex consolidated lower this morning amid global political turbulence, including in oil-rich Saudi Arabia. Last night the US dollar index dropped to more than two-week lows on Tuesday while emerging market currencies outperformed, as rising stock markets reflected improving risk appetite.
Both LME and SHFE base metals ended in mixed performance overnight. LME aluminium, zinc gained close to 0.2% while copper dipped 0.1%, nickel slid 0.4% and lead lost 0.67%. SHFE nickel and lead sank close to 0.8%, copper and zinc dropped some 0.4% while aluminium rose some 0.7%.
From US side data showed US industrial production increased for a fourth straight month in September, boosted by gains in manufacturing and mining output, but momentum slowed sharply in the third quarter. The Federal Reserve said on Tuesday industrial production rose 0.3% last month after an unrevised 0.4% increase in August.
Trading Ideas:
–Aluminium trading range for the day is 147.4-152.
–Aluminium prices remained under pressure amid increasing stockpiles
–China’s factory-gate inflation cooled for a third straight month in September amid ebbing domestic demand, pointing to more pressure on the economy.
–China exported 507,000 mt of unwrought aluminium and aluminium products in Sep
Courtesy: Kedia Commodities
Source: Commodityonline.com
