Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 10.41% to settled at 1360 while prices down 0.2 rupees.
Now MCX Aluminium is getting support at 213.6 and below same could see a test of 211.6 levels, and resistance is now likely to be seen at 216.7, a move above could see prices testing 217.8.
Aluminium yesterday settled down by 0.09% at 215.4 as the market exposure reduced amid higher-than-expected US PPI in November and still sluggish China consumer market.
China’s aluminium output in November fell slightly from the previous month, official data showed, hit by an explosion at a smelter in Yunnan and lingering curbs on energy consumption.
The world’s top producer of the metal churned out 3.10 million tonnes of primary aluminium last month, the National Bureau of Statistics (NBS) said, down from 3.132 million tonnes in October and 1.8% lower year-on-year.
Several Chinese regions have curtailed energy-intensive aluminium production this year as they come under pressure to reduce power consumption to meet climate goals and alleviate electricity shortages.
China’s factory output grew faster than expected in November, supported by stronger energy production and a moderation in sky-high materials costs, but new curbs to fight rising COVID-19 cases hit retailers in the world’s second-largest economy.
The data, along with a slowdown in investment growth, underlines the persistent headwinds facing the economy, which have already prompted policymakers this month to ratchet up support.
China will step up support for small businesses, unveiling new financial incentives for local banks to lend to those companies, according to a State Council meeting chaired by Premier Li Keqiang.
Trading Ideas:
–Aluminium trading range for the day is 211.6-217.8.
–Aluminium dropped as the market exposure reduced amid higher-than-expected US PPI in November and still sluggish China consumer market.
–China’s aluminium output in November fell slightly from the previous month, official data showed.
–On a daily basis, November output worked out at around 103,300 tonnes per day, versus about 101,000 tonnes in October.
Courtesy: Kedia Commodities
Source: Comodity Online
