MCX Mentha Oil under fresh selling; Support seen at 1470.7
NCDEX Chana under short covering; Resistance seen at 4234
MCX Cotton under long liquidation
Nickel market under short covering; Support seen at 834.9
NCDEX Jeera likely to move in a range of 16185-16505
Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 2.75% to settled at 4704 while prices up 1.3 rupees.
Now MCX Aluminium is getting support at 133.3 and below same could see a test of 132 level, And resistance is now likely to be seen at 135.6, a move above could see prices testing 136.6.
Aluminium on MCX settled up 0.97% at 134.65 amid signs of tight supply outweighing worries over the effect of a Chinese economic slowdown. On-warrant stocks of aluminium available to the market in London Metal Exchange-registered warehouses tumbled to 848,650 tonnes from more than a million tonnes a week ago.
The United States and China are “miles and miles” from resolving trade issues but there is a fair chance the two countries will get a deal, U.S. Commerce Secretary Wilbur Ross said ahead of talks in Washington. Global aluminium production grew at its slowest pace in a decade in 2018, and most of that was in the first half of the year.
Output totalled 64.34 million tonnes, according to the International Aluminium Institute (IAI), up by just 1.5 percent on 2017. Production did no more than flat-line over the second half of 2018. It was the weakest production performance since 2009, when the industry was battered by the global financial crisis, a collapse in prices and multiple smelter closures.
Even China, the world’s dominant producer, ran out of expansion steam last year with growth of 1.6 percent, while the rest of the world managed just 1.4 percent. For the world outside China it was a year of unusually high disruption rates but for smelters everywhere the real problem is price. The NBS figures suggest China’s output surged to a record high of 3.050 million tonnes in December with full-year output apparently up 7.4 percent.
Trading Ideas:
–Aluminium trading range for the day is 132-136.6.
–Aluminium prices gained amid signs of tight supply outweighing worries over the effect of a Chinese economic slowdown.
–China Dec alumina output up 19.6 percent y/y at 6.21 mln tonnes – stats bureau
–China 2018 alumina output up 9.9 percent y/y at 72.53 million tonnes – stats bureau
Courtesy: Kedia Commodities
Source: Commodityonline.com
