MCX Nickel under short covering; Support seen at 906.7
MCX Menthol Oil under long liquidation; Support seen at 1690.8
MCX Cotton may trade between 22610-23010 levels
Short covering seen in MCX Cardamom
NCDEX Jeera under short covering; Resistance seen at 20542
Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 5.91% to settled at 2815 while prices down 0.9 rupees.
Now MCX Aluminium is getting support at 147.2 and below same could see a test of 146.2 level, And resistance is now likely to be seen at 149.2, a move above could see prices testing 150.2.
Aluminium on MCX settled down 0.6% at 147.95 on profit booking despite of market talk that Jinjiang and Xinfa have cut their alumina capacity due to tight supplies of bauxite. China’s primary aluminium production fell for a second straight month in September and slid to its lowest level since May, as weaker aluminium prices and higher input costs led smelters to cut back output.
The world’s top aluminium producer churned out 2.79 million tonnes of the metal last month, according to data from the National Bureau of Statistics. That was down 1.8 percent from 2.84 million tonnes in August, but up 7.1 pct from a year ago. On a daily basis, China produced around 93,000 tonnes of primary aluminium last month, according to data.
September had one day fewer than August. Aluminium prices on the Shanghai Futures Exchange fell by 4.2 percent in September, whereas spot prices for alumina, the substance used to make the metal, in the smelting heartland of east China region nudged up another 0.8 percent after climbing by 10.8 percent in August.
Furthermore, east China’s Shandong province last month said it had started charging owners of captive power plants, which include major aluminium smelters, fees for electricity generated using the plants, raising their production costs.
Key aluminium centres in Shandong have avoided a repeat of last year’s 30 percent blanket cuts to production in the coming winter, but are still waiting to hear what restrictions are to be set by their city governments.
Trading Ideas:
–Aluminium trading range for the day is 146.2-150.2.
–Aluminium dropped on profit booking despite of market talk that Jinjiang and Xinfa have cut their alumina capacity due to tight supplies of bauxite.
–China’s primary aluminium production fell for a second straight month in September and slid to its lowest level since May.
–China’s primary aluminium supply is expected to grow at 4.1% in 2019, while consumption is likely to grow at a slower pace of 3%.
Courtesy: Kedia Commodities
Source: Commodityonline.com
