MCX Copper may trade in a range between 428.9-447.7
MCX Natural Gas may trade in a range between 231.1-247.1
MCX Nickel likely to move in a range of 841.7-884.9
MCX Aluminium may trade between 142.8-147.8 levels
Crude Oil market under fresh selling; Support seen at 4574
Technically Zinc market is under short covering as market has witnessed drop in open interest by 6.3% to settle at 3080.
Now Zinc is getting support at 187.2 and below same could see a test of 185.6 levels and resistance is now likely to be seen at 190.6, a move above could see prices testing 192.4.
Zinc on MCX settled up 0.88% at 188.65 gained on expectations of eased US-China trade tension buoyed LME zinc to a high of $2,566/mt last night. It regained most of its losses on Thursday and settled at $2,544.5/mt.
Total zinc inventories are at their lowest since 2008, prompting one of the widest backwardations in the metal’s nearby cash/three-month spread, recently seen at $63 per tonne.
Prices may see some sentimental support as market participants were also betting on economic stimulus measures in China after the world’s top metals consumer pledged to boost domestic infrastructure spending to combat a perceived slowdown in its economy.
Last night most LME and SHFE base metals ended in the black overnight with LME nickel being the best performer, up 2.5% on the day. LME copper and zinc surged 2.3%, lead jumped 1.75%, aluminium rose by over 1%.
The US dollar retreated from multi-month highs on Thursday while the pound rose the most in nine months on reports that London is close to a financial services deal with Brussels. A British official said that London was close to a deal that will grant UK-based financial services firms basic access to the rest of the EU markets.
The BOE announced it would keep interest rates unchanged on Thursday and this also bolstered the sterling, but the BOE also hinted at faster rate increases if Brexit goes smoothly. The US will release October nonfarm payrolls, the September trade balance, durable goods orders and factory orders.
Trading Ideas:
–Zinc trading range for the day is 185.6-192.4.
–Zinc prices ended with gains on concerns of an environmental crackdown in China.
–China’s Ministry of Ecology and Environment (MEE) said that it will begin the second round of environmental reviews soon.
–Stocks across Shanghai, Guangdong, Tianjin rose by 1,800 mt from Friday Oct 26 to stand at 150,700 mt as of now.
Courtesy: Kedia Commodities
Source: Commodityonline.com
