MCX Zinc may trade in a range between 196.6-203.2
Natural Gas market under long liquidation; Support seen at 235.7
MCX Nickel likely to move in a range of 884.2-928
MCX Aluminium expected to trade between 147.6-149.8 levels
MCX Mentha Oil under fresh buying; Resistance seen at 1724.2
Technically Copper market is under fresh selling as market has witnessed gain in open interest by 2.93% to settled at 11756 while prices down 4.9 rupees.
Now MCX Copper is getting support at 445.5 and below same could see a test of 443.1 levels and resistance is now likely to be seen at 450.3, a move above could see prices testing 452.7.
Copper on MCX settled down 1.08% at 447.80 edged lower in the line of expectation in yesterday’s session as the U.S. dollar strengthened after minutes from the Federal Reserve’s meeting last month showed more interest rate increases are likely for the rest of the year.
Comments from Chinese Premier Li Keqiang that China’s economy faces increasing downward pressure amid an ongoing trade war with the United States also weighed on sentiment.
Last night the US dollar index traded at a week-high on Thursday as US Treasury yields traded near multiyear highs, after minutes from the Fed’s September meeting showed that Fed policymakers remained largely united on further raising interest rates.
That came despite US President Donald Trump’s view that interest rate hikes have already gone too far. LME base metals ended in negative territory across the board on Thursday. Lead led the decreases with a loss of 1.7%. Copper dropped 1.4%, aluminium slid 0.77%, tin and nickel lost some 0.5% and zinc edged down 0.04%.
China’s economic growth slowed more than expected, to the slowest since the first quarter of 2009 as trade tension with the US and domestic structural adjustments weigh on growth, according to data from China’s National Bureau of Statistics (NBS) released on Friday.
Chinese GDP grew 6.5% year on year in the third quarter of 2018. While the US would release its existing home sales numbers for September.
Trading Ideas:
–Copper trading range for the day is 443.1-452.7.
–Copper extended losses curbed by tepid spot trading amid increasing stockpiles at the futures exchange.
–Stocks of cash-settled copper futures warrants in China increased for a fourth straight session, adding 2,887 tonnes to 58,230 tonnes, SHFE data showed.
–Increase in refined copper imports and expansion of smelter capacity in China would also weighing on copper prices.
Courtesy: Kedia Commodities
Source: Commodityonline.com
