Zinc market under long liquidation; Support seen at 194.9
Natural Gas market under short covering; Support seen at 233.5
Crude Oil market iunder fresh buying; Support seen at 5070
MCX Nickel under short covering; Support seen at 906.7
MCX Aluminium under fresh selling; Resistance seen at 149.2
Technically market is under short covering as market has witnessed drop in open interest by 4.12% to settle at 11272.
Now MCX Copper is getting support at 449 and below same could see a test of 444.8 levels and resistance is now likely to be seen at 455.5, a move above could see prices testing 457.8.
Copper on MCX settled up 1.16% at 453 after regulators in China pledged support for firms with liquidity issues brought on by months of slowing growth. China’s economy grew at a slower than expected pace of 6.5 percent in the third quarter from a year earlier, marking the weakest rate since the global financial crisis, official data showed.
The data points to a modest cooling in the world’s second-largest economy, as the government’s multi-year efforts to tackle debt risks begin to weigh on growth and as a trade war with the United States threatens exports.
The GDP reading was the weakest year-on-year quarterly growth since the first quarter of 2009 during the global financial crisis. Recent economic data have pointed to weakening domestic demand with softness across factory activity to infrastructure investment and consumer spending, as a years-long crackdown on riskier lending and debt has pushed up companies’ borrowing costs.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 12.0 percent from last Friday, the exchange said. Copper stocks across Shanghai bonded areas shrank by 2,200 mt from October 12 to 405,000 mt as of Friday October 19, data showed. Purchasing interest across domestic traders cooled as the import window has remained closed for nearly a month.
This lowered bonded stocks on the week. Japan’s copper cable shipments including sales and exports fell 5.5 percent in September from a year earlier to 56,900 tonnes, the Japan Electric Wire and Cable Makers’ Association said.
Trading Ideas:
–Copper trading range for the day is 444.8-457.8.
–Copper gained after regulators in China pledged support for firms with liquidity issues brought on by months of slowing growth.
–China’s economy grew 6.5 percent in the third quarter from a year earlier, its weakest pace since the global financial crisis.
–The Chinese copper premium for physical material dipped to $117.50 a tonne from $120.
Courtesy: Kedia Commodities
Source: Commodityonline.com
