MCX Zinc likely to trade in a range between 177.3-184.5
MCX Copper likely to trade in a range between 414.9-430.5
MCX Nickel likely to move in a range of 747.4-781
MCX Natural Gas may trade in a range between 237.7-282.3
Short covering seen in MCX Mentha Oil
Technically Aluminium market is getting support at 134.4 and below same could see a test of 133.7 level, And resistance is now likely to be seen at 135.9, a move above could see prices testing 136.7.
Aluminium on MCX settled down 0.33% at 135.05 tracking weakness from LME aluminium prices which sank to a 16-month low after the United States said it would withdraw sanctions on Russian aluminium producer United Company Rusal.
The Russian aluminium giant’s Hong Kong shares rose as much as 26.8 percent to their highest since April, the month when the sanctions were announced and sent aluminium prices soaring on fears of a supply squeeze.
The LME said it proposed to lift its suspension on aluminium produced Rusal if U.S. sanctions are lifted. Also representatives from China’s biggest aluminium producers will hold a meeting on Friday in the southern region of Guangxi to discuss slumping demand and falling prices, three sources familiar with the matter said.
Last night LME base metals mostly gained as the dollar came off its lows but remained weaker after the Fed’s guidance on its tightening cycle turned out to be less dovish than expected, even as it forecast fewer interest rate hikes than it had in September.
As markets expected, the central bank raised the target range for its benchmark funds rate from 2.25% to 2.5%. This is the fourth increase this year and the ninth since it began to normalise rates in December 2015.
Fresh economic forecasts released by the Fed on Wednesday showed that policymakers expect two rate hikes next year and one in 2020.
The language in the post-meeting statement was not entirely dovish, or easy on its outlook for rates. Now a day ahead traders will be eyeing the US weekly initial jobless claims will be available today.
Trading Ideas:
–Aluminium trading range for the day is 133.7-136.7.
–Aluminium dropped as investors concerned about global economic growth waited to see whether the U.S. Fed would raise interest rates for a fourth time this year.
–China’s industrial output rose the least in nearly three years in November and retail sales grew at their weakest pace since 2003.
–Social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, continued its decline and stood at 1.28 million mt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
