MCX Nickel under fresh buying; Resistance seen at 907.8
MCX Aluminium likely to move in a range of 133.3-136.1
MCX Mentha Oil under fresh selling; Support seen at 1575.6
NCDEX Chana under long liquidation
Long liquidation seen in MCX Cotton
Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 2.59% to settled at 3293.
Now MCX Zinc is getting support at 191.9 and below same could see a test of 189.4 levels and resistance is now likely to be seen at 196, a move above could see prices testing 197.
Zinc on MCX settled up 1.33% at 194.5 supported by trade hopes between China and the US after prices earlier seen pressure amid deteriorating global economic outlook.
The global zinc market deficit narrowed to 61,800 tonnes last December from a revised deficit of 80,900 tonnes in November, data from the International Lead and Zinc Study Group (ILZSG) showed. In the full year 2018 the zinc market had a 384,000 tonne deficit, compared with a deficit of 442,000 tonnes in 2017.
The premium for cash zinc over the three-month LME contract rose to $26.50 as stocks in LME warehouses fell to their lowest since 2017 at 83,250 tonnes. Underpinning zinc, data showed LME inventories of the metal eroded further to their lowest since January 2008. Cash zinc traded at a premium of $1 a tonne to the three-month price, off a high of $125 in early December, though reduced tightness in the spreads was lulling the market into “a false sense of looseness”.
Top U.S. and Chinese trade negotiators haggled over the details of a set of agreements aimed at ending their trade war, just one week before a Washington-imposed deadline for a deal expires and triggers higher U.S. tariffs.
Negotiators have struggled in the week to overcome differences on specific language to address tough U.S. demands for structural changes in China’s economy, two sources familiar with the talks said. The issues include an enforcement mechanism to ensure that China complies with any agreements.
Trading Ideas:
–Zinc trading range for the day is 189.4-197.6.
–Zinc prices gained supported by trade hopes between China and the US after prices earlier seen pressure amid deteriorating global economic outlook.
–The global zinc market deficit narrowed to 61,800 tonnes last December from a revised deficit of 80,900 tonnes in November, data from the ILZSG showed.
–The premium for cash zinc over the three-month LME contract rose to $26.50 as stocks in LME warehouses fell to their lowest since 2017 at 83,250 tonnes.
Courtesy: Kedia Commodities
Source: Commodityonline.com
