Natural Gas market under long liquidation; Support seen at 240
MCX Nickel likely to move in a range of 747.6-771
MCX Aluminium expected to trade between 130-135.4 levels
MCX Mentha Oil under short covering
NCDEX Chana under long liquidation; Support seen at 4299
Technically Copper market is getting support at 412.7 and below same could see a test of 410.2 levels and resistance is now likely to be seen at 418.6, a move above could see prices testing 422.
Copper on MCX settled down 0.49% at 415.30 reflecting faltering sentiment among investors amid mounting concerns over an economic slowdown.
Prices tumbled in most Chinese commodities following a pre-Christmas holiday sell-off in overseas markets, with investors rattled by a likelihood of a prolonged U.S. government shutdown and the U.S. Treasury secretary’s convening of a crisis group meeting to calm markets.
Trade is generally lukewarm during the Christmas holiday period. China is unlikely to add more refined copper output before producers reach an agreement on new treatment and refining charges.
A meeting to discuss the TC/RCs for the first quarter next year is scheduled to be held on Thursday. Last night SHFE base metals, except for copper and aluminium, traded lower across the board overnight. Nickel dropped some 1.3%, lead fell 1.1% zinc dipped 0.1%.
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.
China took further steps in opening up its market on Tuesday by rolling out a shorter negative list for market access. The latest version of the negative list for market access consists 151 items and 581 rules, down by 177 and 288, respectively, compared with the previous version.
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.
Trading Ideas:
–Copper trading range for the day is 410.2-422.
–Copper dropped amid ongoing concerns over global economic growth.
–China will ratchet up support for the economy in 2019 by cutting taxes and keeping liquidity ample.
–China and US held a vice-ministerial-level call, the second such contact in a week, achieving a “deep exchange of views” on trade imbalances.
Courtesy: Kedia Commodities
Source: Commodityonline.com
