Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 7.26% to settled at 2030 while prices down 1.5 rupees.
Now MCX Aluminium is getting support at 229.6 and below same could see a test of 228.3 levels, and resistance is now likely to be seen at 232.3, a move above could see prices testing 233.7.
Aluminium yesterday settled down by 0.65% at 230.75 as ShFE aluminium inventories rose for the first time in five weeks to 229,847 tonnes, easing supply shortage worries and pressuring prices.
The social inventories of aluminium billet and aluminium have been on the rise, mainly caused by sluggish downstream demand amid surging prices and power rationing.
China will release another 150,000 tonnes of metals from its state reserves on Oct. 9 to downstream fabricators and manufacturers, the National Food and Strategic Reserves Administration said.
The administration will auction 30,000 tonnes of copper, 50,000 tonnes of zinc and 70,000 tonnes of aluminium via online platforms operated by Norinco and Minmetals Group, it said on its website.
On the macro front, US new housing sales in August rose 1.5% on the month, the highest in four months. The consumers’ long-run inflation expectations were still firmly contained according to the New York Federal Reserve.
As such, the macro sentiment is relatively stable. Global primary aluminium output dropped to 5.699 million tonnes in August from a downwardly revised 5.733 million tonnes in July, data from the International Aluminium Institute (IAI) showed. Overall, primary aluminium production in August rose 3.15% year on year, the IAI said.
Trading Ideas:
–Aluminium trading range for the day is 228.3-233.7.
–Aluminium dropped as ShFE aluminium inventories rose for the first time in five weeks to 229,847 tonnes, easing supply shortage worries.
–China to release another 150,000 tonnes of metals from state reserves.
–US new housing sales in August rose 1.5% on the month, the highest in four months.
Courtesy: Kedia Commodities
Source: Comodity Online
