MCX Copper may trade in a range between 410.2-422
Natural Gas market under long liquidation; Support seen at 240
MCX Nickel likely to move in a range of 747.6-771
MCX Mentha Oil under short covering
NCDEX Chana under long liquidation; Support seen at 4299
Technically Aluminium market is getting support at 130.9 and below same could see a test of 130 level, And resistance is now likely to be seen at 133.6, a move above could see prices testing 135.4.
Aluminium on MCX settled down 1.46% at 131.90 tracking weakness from LME Aluminium hit 16-month lows on Monday as investor worries over slowing global growth and tightening monetary conditions overshadowed news of smelter cuts in China, while copper extended four straight weeks of losses.
Chinese aluminium producers are set to cut at least another 800,000 tonnes per year of smelting capacity in the coming months, while Beijing plans to ratchet up support for the economy in 2019 by cutting taxes and keeping liquidity ample.
Investors are however fretting that the global economy is slowing just as monetary conditions the world over are tightening, with political instability in the United States leaving open the possibility of a prolonged government shutdown.There are also signs the U.S. trade dispute with China is hurting growth in the world’s top metals consumer.
While the LME was closed on Tuesday for Christmas. The US dollar fell against the major safe-haven as investors cut their exposure to riskier assets amid the partial US government shutdown and signs of confrontation between the White House and the Federal Reserve.
The negative list outlines sectors, fields and businesses that are off-limits for investors. Industries not on the list are open for investment to all market players.
China started to pilot the negative-list approach in 2016 in the country’s four provincial regions with free trade zones. The pilot practice was extended to another 11 provincial regions in 2017.
Trading Ideas:
–Aluminium trading range for the day is 130-135.4.
–Aluminium prices dropped despite a proposal to further reduce China’s production capacity.
–Chinese producers are set to cut at least another 800,000 tonnes per year of smelting capacity in coming months.
–The country has cut more than 3 million tonnes of aluminium smelting capacity so far this year.
Courtesy: Kedia Commodities
Source: Commodityonline.com
