Mentha Oil market under fresh buying; Support seen at 1668.4
MCX Aluminium may trade in a range between 135.5-138.3
MCX Zinc may trade in a range between 174.4-185.4
MCX Cotton under long liquidation
MCX Cardamom under fresh buying; Support seen at 1495.1
Technically market is getting support at 756.1 and below same could see a test of 746.3 levels and resistance is now likely to be seen at 771.5, a move above could see prices testing 777.1.
Nickel on MCX settled up 0.18% at 765.80 on rupee weakness which London Nickel which traded 0.6 percent weaker but Shanghai nickel bucked the trend among base metals to settle up 0.2 percent. Nickel stockpile in LME warehouses is around a five-year low, at 214,188 tonnes.
Uncertainty prevails in the market as Chinese iron ore futures tumbled and steel prices dropped as worries over weaker steel demand sustained a sell-off, with raw materials coking coal and coal also down sharply. Steel-linked metals nickel and zinc fell on Monday on expectations of weaker demand from Chinese steel mills.
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.
It seems like there are tentative signs from the Fed that they see caution on the rise, so if the Fed minutes and Mr Powell both play up an increase in caution, I think that would tend to suggest the Fed may opt for a slower pace of rate hikes going forward.
Trade tensions between the United States and China are also at the forefront with U.S. President Donald Trump and Chinese President Xi Jinping due to meet at a G20 meeting in Buenos Aires on Nov. 30 to discuss contentious trade matters.
Trading Ideas:
–Nickel trading range for the day is 746.3-777.1.
–Nickel recovered on short covering after prices dropped as expectations of weaker demand from Chinese mills dented prices.
–In recent session, adding to the bearish mood for nickel was news that German chemicals giant BASF plans to use less of the metal in its electric car batteries.
–Expectations of a supply avalanche hitting the nickel market next year due to new capacity in Indonesia have sent prices down more than 15 percent since September.
Courtesy: Kedia Commodities
Source: Commodityonline.com
