Mentha Oil market under fresh selling; Support seen at 1599.4
MCX Aluminium under fresh buying; Support seen at 130.7
MCX Nickel may trade in a range between 848.1-901.3
Zinc market under fresh buying; Support seen at 186.2
Natural Gas market under short covering; Support seen at 183.2
Technically Copper market is under short covering as market has witnessed drop in open interest by -2.11% to settled at 8881 while prices up 6.75 rupees.
Now MCX Copper is getting support at 436.2 and below same could see a test of 430.6 level, And resistance is now likely to be seen at 445, a move above could see prices testing 448.2.
Copper on MCX settled up 1.55% at 441.8 after better than expected lending data in China, the world’s biggest consumer, bolstered the demand outlook. However, slowing global growth, the U.S.-China trade dispute and a strong dollar took their toll.
China’s banks made the most new loans on record in January after government efforts to jump-start investment and prevent a sharp slowdown. That offset less positive data showing China’s factory-gate inflation slowed for a seventh straight month in January.
Given that supply of copper is tight, better demand from China should raise prices to about $6,500 if consumption elsewhere does not collapse. On-warrant stocks of copper available to the market in LME-registered warehouses fell to 74,600 tonnes, nearing 13-year lows reached in October.
Adding to concerns of a supply squeeze, one entity held 50-79 percent of LME copper warrants. The discount of cash copper to the three-month contract has flipped to a premium, suggesting less nearby supply is available.
Copper stocks in Shanghai Futures Exchange warehouses have doubled to more than 200,000 tonnes in the past month. A dearth of copper mine projects means the market will remain in deficit until 2027 and prices could rise to $10,000 a tonne by 2025.
Talks between China and the United States to resolve their bruising trade war will resume in Washington, with both sides saying this week’s negotiations in Beijing made progress.
Trading Ideas:
–Copper trading range for the day is 430.6-448.2.
–Copper rallied after better than expected lending data in China, the world’s biggest consumer, bolstered the demand outlook.
–Given that supply of copper is tight, better demand from China should raise prices to about $6,500 if consumption elsewhere does not collapse.
–On-warrant stocks of copper available to the market in LME-registered warehouses fell to 74,600 tonnes, nearing 13-year lows reached in October.
Courtesy: Kedia Commodities
Source: Commodityonline.com
