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 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 Zinc market is getting support at 179.5 and below same could see a test of 177.3 levels and resistance is now likely to be seen at 183.1, a move above could see prices testing 184.5.
Zinc on MCX settled up 1.39% at 181.75 gained tracking other base metals prices on the London Metal Exchange were mostly higher at the close of trading on Wednesday December 19, reflecting a continued retreat in the dollar index.
Zinc gained 0.8 per cent to finish at $US2,540 a tonne. The bulk of metals demand comes from emerging market nations such as China, while a weaker dollar makes commodities priced in the greenback cheaper for buyers using other currencies.
Also, China’s economic conference has started, and the market is still speculating that it will come up with some additional measures to stabilise growth which has been under pressure recently.
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 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.
Trading Ideas:
–Zinc trading range for the day is 177.3-184.5.
–Zinc ended with gains on short covering as the dollar weakened on expectations that the U.S. Federal Reserve will cut the number of hikes it anticipates next year.
–The global zinc market deficit narrowed to 43,400 tonnes in October from a revised deficit of 46,900 tonnes in September, ILZSG said.
–The premium for cash LME zinc over the three-month price bounced back to $50.50 a tonne on Monday after hitting a two-month low of $26 a tonne.
Courtesy: Kedia Commodities
Source: Commodityonline.com
