MCX Copper market under short covering; Support seen at 441.5
MCX Cotton under long liquidation
MCX Cardamom under fresh selling; support seen at 1402.8
NCDEX Jeera under fresh buying; Support seen at 20818
NCDEX Turmeric under fresh selling; Resistance seen at 6727
Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 13.47% to settle at 3495.
Now MCX Zinc is getting support at 186.7 and below same could see a test of 184.8 level, And resistance is now likely to be seen at 191.3, a move above could see prices testing 194.
Zinc settled flat paring gains on profit booking after prices rose helped by concerns over supply shortages while an improving technical picture provided encouragement for buyers. On-warrant zinc stocks in LME-registered warehouses have fallen below 100,000 tonnes from almost 240,000 tonnes in August and are close to 10-year lows.
The premium for cash zinc over the three-month LME contract, at $53, remains close to Monday’s $63 one-year high, signalling tight nearby supply. The global zinc market had a deficit of 292,000 tonnes in the first eight months of the year, data from the International Lead and Zinc Study Group (ILZSG) showed. In August the deficit was 76,200 tonnes.
Chinese zinc production in September was down 10.1 percent year-on-year at 456,000 tonnes amid a crackdown on polluting industry. China accounts for nearly half of global refined zinc production of about 13.5 million tonnes. China more than quadrupled the value of fixed-asset investment projects approved in the third quarter from the April-June period, as part of efforts to prop up the slowing economy.
Treatment charges (TCs) for spot zinc concentrates continued to rise over the past week after an open arbitrage into China and agreement on higher prices led to a flurry of deals earlier in the month. The zinc market is still in transition from being more tightly supplied than at any other time for a decade, to having a more balanced future.
Trading Ideas:
–Zinc trading range for the day is 184.8-194.
–Zinc settled flat paring gains on profit booking after prices rose helped by concerns over supply shortages while an improving technical picture provided encouragement for buyers.
–Chinese zinc production in September was down 10.1 percent year-on-year at 456,000 tonnes amid a crackdown on polluting industry.
–The premium for cash zinc over the three-month LME contract, at $53, remains close to Monday’s $63 one-year high, signalling tight nearby supply.
Courtesy: Kedia Commodities
Source: Commodityonline.com
