MCX Copper likely to trade in a range between 425.8-453.6
MCX Natural Gas likely to trade between 293.9-343.1 range
MCX Crude Oil may trade in range between 3641-4225.
MCX Nickel expected to trade between 773.2-814.4 levels
MCX Aluminium likely to move in a range of 136.8-140
Technically market is getting support at 183.6 and below same could see a test of 181.2 levels and resistance is now likely to be seen at 189.6, a move above could see prices testing 193.2.
Zinc on MCX settled down 2.18% at 185.90 slipped on unnerved by a sell-off on share markets and sapped by uncertainty before a meeting of US and Chinese leaders.
Also weighing on base metals was risk-off sentiment as world stock markets fell in a tech-led sell-off, while the dollar index rallied from a two-week low, making commodities priced in the greenback more expensive for buyers using other currencies.
Meanwhile the premium of LME cash zinc over the three-month contract soared to $US97 a tonne by Monday’s close, the highest since at least June 2009, the earliest date for which data is available. It was quoted at $US85 on Tuesday.
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This is due to shortages of metal for immediate delivery as investors with short positions seek to close out or roll over their contracts ahead of the November expiry on Wednesday. LME three-month zinc fell 1.9 per cent to end at $US2,551 a tonne.
A slide in zinc inventories on the London Metal Exchange to their lowest in more than a decade has wrong-footed bearish investors who are scrambling to cover or roll over futures positions before the November contract expiry.
Last night the US dollar rallied from a two-week low and settled at 96.79 as a sell-off in global stock markets spurred safe-haven bids and investors grew concerned about slowing global growth.
Global stock markets were selling off on Tuesday as the tech slump that gripped US equities on Monday spread around the world. At the US open, all three major indexes dropped sharply, with the Nasdaq dipping another 2%.
Trading Ideas:
–Zinc trading range for the day is 181.2-193.2.
–Zinc dropped as tensions between the United States and China escalated ahead of a major meeting between the two presidents next week.
–A slide in zinc inventories on LME to their lowest in more than a decade has wrong-footed bearish investors who are scrambling to cover or roll over positions.
–The ILZSG slashed its forecasts last month, revising the gain in global zinc mine output to 2 percent from an April estimate of a 5.1 percent.
Courtesy: Kedia Commodities
Source: Commodityonline.com
