Zinc market under long liquidation; Support seen at 189.5
MCX Nickel under fresh buying; Support seen at 845.9
MCX Aluminium may trade between 130.1-136.9
MCX Mentha Oil under fresh buying; Resistance seen at 1569.7
NCDEX Chana under fresh buying; Support seen at 4196
Technically Copper market is getting support at 425.7 and below same could see a test of 420.6 levels and resistance is now likely to be seen at 433.6, a move above could see prices testing 436.4.
Copper on MCX settled up 1.95% at 430.75 on short covering tracking overnight jump as in US crude oil prices, followed US sanctions on Venezuela, which would curb the country’s crude exports, buoyed copper prices. LME copper rose to close at $6,062.5/mt on Tuesday.
While trades are stagnant consumption, caused by the Chinese New Year holiday, would grow inventories in China. This might pressure copper prices, on the backdrop of macroeconomic optimism.
Support also seen in Copper and other base metals prices will recover only modestly this year as an economic slowdown in top metals consumer China subdues demand, a Reuters poll showed. LME base metals traded mixed on Tuesday.
Nickel surged 2.5%, aluminium rose 1.6%, copper climbed 1.2%, while lead dipped 0.07% and zinc fell 0.8%. The British pound fell to a three-day low on Tuesday as lawmakers rejected most amendments for Britain to avoid leaving the European Union without a deal. This again grew of a chaotic withdrawal from the trading bloc.
From data side the US conference Board consumer confidence for January came in weaker than expected at 120.2, versus the expectations of 124. The prior month was at 126.6, revised from 128.1. The January number was at the lowest level since July 2017.
Now a day ahead economic data slated for release today include Germany’s February Gfk consumer confidence index and January consumer price index, the eurozone’s January consumer confidence index, the US ADP January payroll report, December pending home sales and the EIA weekly crude inventory data. Today, the Fed policymakers would begin a two-day policy meeting.
Trading Ideas:
–Copper trading range for the day is 420.6-436.4.
–Copper prices gained as investors focusing on U.S.-China trade talks and a U.S. Federal Reserve meeting.
–China’s imports of unwrought copper and copper products saw a larger year-over-year decline in December.
–China imported 431,000 mt of unwrought copper and copper semis in December, down 6.3% month on month and 4.22% year on year.
Courtesy: Kedia Commodities
Source: Commodityonline.com
