MCX Nickel likely to move in a range of 900.8-959.8
MCX Aluminium under short covering; Support seen at 143.8
MCX Mentha Oil under fresh buying; Support seen at 1607.8
MCX Copper under long liquidation
NCDEX Chana under long liquidation; Resistance seen at 4159
Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 9.71% to settled at 4075 while prices down 4.2 rupees.
Now MCX Zinc is getting support at 191.2 and below same could see a test of 189.7 level, And resistance is now likely to be seen at 195.6, a move above could see prices testing 198.5.
Zinc on MCX settled down 2.13% at 192.70 on profit booking as investors remain cautious on a stronger US dollar dragged sentiments down amid concerns over slower US economic growth.
Most other base metals also slipped after the European Central Bank delayed interest rate rises to 2020 and promised cheap loans, pushing the euro lower and the dollar higher, and making metals more expensive for buyers with other currencies.
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Now optimism over the ability of a potential U.S.-China trade deal and Chinese economic stimulus to push prices higher was also fading. Earlier this month Zinc rose on concern about shortages after inventories slid, but some other industrial metals were softer after factory activity in top metals consumer China contracted.
Zinc mines have been ramping up, but smelters have not been able to keep up, so shortages of refined metal have persisted. Meanwhile China to tackle abnormal financial market fluctuations in a timely way and to reduce funding difficulties for manufactures.
China to encourage banks to lend mid, long-term to private companies. China to expand bond issuance for qualified businesses. Now traders are eyeing data from China which will release data on its February’s trade balance, and the US will release its nonfarm payroll employment and the jobless rate for last month.
Trading Ideas:
–Zinc trading range for the day is 189.7-198.5.
–Zinc prices dropped amid concerns over slower US economic growth and a higher US dollar.
–China to tackle abnormal financial market fluctuations in a timely way and to reduce funding difficulties for manufactures.
–China to encourage banks to lend mid, long-term to private companies. China to expand bond issuance for qualified businesses
Courtesy: Kedia Commodities
Source: Commodityonline.com
