MCX Nickel under fresh selling; Support seen at 770
MCX Aluminium under fresh selling; Support seen at 138.4
MCX Mentha Oil under short covering
NCDEX Chana under fresh selling; Resistance seen at 4544
MCX Cotton may trade between 21970-22430 levels
Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 0.71% to settled at 2975 while prices up 1.05 rupees.
Now MCX Zinc is getting support at 188.7 and below same could see a test of 186.5 levels and resistance is now likely to be seen at 192.5, a move above could see prices testing 194.1.
Zinc prices recovered on short covering after pressure seen on concerns the U.S.-China trade friction will hurt demand. Social inventories of refined zinc across Shanghai, Guangdong and Tianjin came in at 107,700 mt down some 700 mt from last Friday and down 3,700 mt from previous week, data showed.
Compared to Friday, limited imported zinc in Shanghai accounted for the overall decline. Deliveries from smelters to social warehouses nudged up stocks in Tianjin and Guangdong over the weekend. Downstream consumption remained slow.
Stocks of zinc in LME registered warehouses at 113,175 tonnes have halved since the middle of August to their lowest in more than 10 years. That combined with a large position holding between 80 and 89 percent of warrants and cash contracts has created nervousness about nearby availability on the LME market.
This can be seen in the premium for the cash over the three-month contract rising to $125 a tonne last week. It was last around $94 a tonne. The number of available jobs exceeded the number of unemployed workers by about 1 million in the US, according to the most recent government count of job openings, according to a Labor Department.
US total available jobs stood at 7.08 million for October, the second-highest level surpassed only by the 7.3 million in August, the Job Openings and Labor Turnover Survey (JOLTS) showed. By comparison, there were just 6.08 million Americans classified as unemployed for the month.
Trading Ideas:
— Zinc trading range for the day is 186.5-194.1.
–Zinc prices recovered on short covering after pressure seen on concerns the U.S.-China trade friction will hurt demand.
–Social inventories of refined zinc across Shanghai, Guangdong and Tianjin came in at 107,700 mt down some 700 mt from last Friday.
–Stocks of zinc in LME registered warehouses at 113,175 tonnes have halved since the middle of August to their lowest in more than 10 years.
Courtesy: Kedia Commodities
Source: Commodityonline.com
