MCX Crude Oil likely to trade in a range between 3863-4257
MCX Copper under short covering
MCX Nickel under fresh buying; Resistance seen at 823.4
MCX Aluminium under fresh buying; Support seen at 138.5
MCX Mentha Oil under long liquidation
Technically Zinc market is under short covering as market has witnessed drop in open interest by 2.9% to settled at 2915 while prices up 3.9 rupees.
Now MCX Zinc is getting support at 188.8 and below same could see a test of 185.2 level, And resistance is now likely to be seen at 194.4, a move above could see prices testing 196.4.
Zinc on MCX settled up 2.07% at 192.2 as LME stockpiles fell to a decade-low, with signs that China may be moving to calm its trade dispute with the United States also boosting prices.
China has delivered a written response to U.S. demands for wide-ranging trade reforms ahead of expected talks between U.S. President Donald Trump and Chinese President Xi Jinping at the G20 summit in Argentina later this month.
LME zinc stocks fell to a decade-low of 125,400 tonnes, data showed, while on-warrant or available stocks hit their lowest since February. Zinc output in October from China, the world’s top producer of the metal, fell 7.6 percent from a year earlier to 501,000 tonnes, official data showed.
The global zinc market deficit narrowed to 54,700 tonnes in September from a revised deficit of 81,800 tonnes in August, data from the International Lead and Zinc Study Group (ILZSG) showed.
The August data was revised after it gave an initial estimate for a deficit of 76,200 tonnes. In the first eight months of the year the zinc market had a 305,000 tonne deficit, compared with a deficit of 398,000 tonnes in the same period last year.
US retail sales rebounded sharply in October as purchases of motor vehicles and building materials surged, likely driven by rebuilding efforts in areas devastated by Hurricane Florence, said the Commerce Department. October retail sales increased 0.8% from September as households purchased more electronics and appliances.
Trading Ideas:
–Zinc trading range for the day is 185.8-195.6.
–Zinc prices dropped tracking LME prices as risk aversion grew as the US stock market slumped.
–China’s domestic supplies stayed relatively tight, market optimism cooled as downstream consumption went sluggish at the year-end.
–Social inventories of refined zinc across Shanghai, Guangdong and Tianjin came in at 123,000 mt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
