Mentha Oil market under fresh buying; Support seen at 1668.4
MCX Aluminium may trade in a range between 135.5-138.3
MCX Nickel expected to trade between 746.3-777.1 levels
MCX Cotton under long liquidation
MCX Cardamom under fresh buying; Support seen at 1495.1
Technically Zinc market is getting support at 177.1 and below same could see a test of 174.4 levels and resistance is now likely to be seen at 182.6, a move above could see prices testing 185.4.
Zinc on MCX settled down 1.15% at 179.85 settled below 180 level mark on expectations of weaker demand from Chinese steel mills overpowered signs that the market is short of metal.
Most other industrial metals also fell on caution over the outcome of trade talks between U. President Donald Trump and Chinese President Xi Jinping later this week that could influence demand for commodities. LME Zinc fell 2.5 per cent on the Shanghai Futures Exchange, its biggest one-day drop since August.
The premium of cash zinc to the three-month contract fell to $US63 from last week’s two-decade high of $US97 but remains unusually high, suggesting a shortage of nearby supply. While stocks of zinc in LME-registered warehouses have halved to 121,550 tonnes since August, a 10-year low, while inventories in ShFE warehouses at around 35,000 tonnes are down from almost 160,000 tonnes in March.
Related Post
Investors are focused this week on a speech on Wednesday by Federal Reserve Chairman Jerome Powell and minutes from the Feds Nov. 7-8 meeting to be released on Thursday, for further indications of how many more times the U.S. central bank is likely to hike interest rates. Slowing global growth has raised expectations the Fed may halt its tightening cycle sooner than previously expected.
Now a day ahead economic data slated for release today include October’s annualised profits of China’s industrial enterprises above a designated size, the US FHFA house price index for September, and its conference board consumer confidence index for November.
Trading Ideas:
–Zinc trading range for the day is 174.4-185.4.
–Zinc prices fell as expectations of weaker demand from Chinese steel mills overpowered signs that the market is short of metal.
–An expected surge in refined zinc output after a clutch of new mine openings has been derailed by bottlenecks at smelters across Asia.
–China’s forced environmental cutbacks on zinc slag, and falling refined prices in the second quarter, prompted many smelters to cut production.
Courtesy: Kedia Commodities
Source: Commodityonline.com
