MCX Zinc likely to trade in a range between 177.3-184.5
MCX Nickel likely to move in a range of 747.4-781
MCX Aluminium likely to move in a range of 133.7-136.7
MCX Natural Gas may trade in a range between 237.7-282.3
Short covering seen in MCX Mentha Oil
Technically Copper market is getting support at 419.9 and below same could see a test of 414.9 levels and resistance is now likely to be seen at 427.7, a move above could see prices testing 430.5.
Copper on MCX settled up 1.72% at 424.70 rebounded cautiously on Wednesday from three-month lows hit in the previous session on hopes the U.S. central bank would slow the pace of interest rate rises, supporting metals demand.
Last night LME base metals mostly gained as the dollar came off its lows but remained weaker after the Federal Reserve’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.
The committee continued to include a statement that more rate hikes would be appropriate, though it conveyed this in a softer tone. The US current-account deficit, a measure of the nation’s trade and financial flows with other countries, increased to a seasonally adjusted $124.8 billion in the third quarter of 2018 from a revised $101.2 billion in the second quarter of 2018, the Commerce Department said on Wednesday.
Now a day ahead traders will be eyeing the US weekly initial jobless claims will be available today. Also the Bank of Japan’s two-day rate review will end today, and it is widely expected to keep interest rates targets unchanged.
Trading Ideas:
–Copper trading range for the day is 414.9-430.5.
–Copper rebounded on hopes the U.S. central bank would slow the pace of interest rate rises, supporting metals demand.
–The discount of LME cash copper to the three-month contract stood at $25.25 a tonne, after hitting $27.50, the widest discount since August.
–China’s refined copper output rose by 7.6 percent year-on- year to 768,000 tonnes in November, its highest level since June.
Courtesy: Kedia Commodities
Source: Commodityonline.com
