Mentha Oil market under fresh buying; Support seen at 1560.5
Aluminium market under fresh buying; Support seen at 141
Zinc market under short covering; Support seen at 180.1
Copper market under fresh selling; Support seen at 415.6
MCX Cotton under fresh selling; Resistance seen at 24016
Technically MCX Nickel is getting support at 953.7 and below same could see a test of 947.2 levels and resistance is now likely to be seen at 964.6, a move above could see prices testing 969.
Nickel on MCX settled up 0.99% at 960.30 gained on fresh buying as all other base metals also rose, with nickel rising as far as $13,935 a tonne, a one-week high on LME. Support also seen as the dollar weakened against a basket of major currencies as its recent rally fueled by U.S.-China trade tensions appeared to fizzle, with nickel hitting a one-week peak.
The dollar inched down versus a basket of currencies, making dollar-denominated assets like basemetals cheaper for holders of other currencies, even after the U.S. Trade Representative’s office said the U.S. would begin collecting 25 percent tariffs on another $16 billion in Chinese goods later this month.
Last night the dollar index slipped 0.07% to 95.098 overnight, while the pound dropped to its lowest level in almost a year on Wednesday as investors ramped up bets on Britain leaving the EU without an agreement with Brussels.
Also China announced on Wednesday that it would levy additional import tariffs of 25% on $16 billion worth of US goods ranging from oil and steel products to autos and medical equipment on August 23.
That came in response to the US decision of imposing the same tariff on an equal amount of Chinese imports on the same day. Resulting LME base metals closed mixed on Wednesday.
A day ahead key things to watch today include China’s consumer and producer inflation, total social financing and M2 money supply in July, US producer inflation in July, initial jobless claims last week and wholesale inventories in June.
Trading Ideas:
–Nickel trading range for the day is 947.2-969.
–Nickel gained on high downstream demand and falling stock across SHFE warehouses.
–Discounts of high-grade nickel pig iron (NPI) to refined nickel prices are expected to widen this month due to an increasing supply of the former.
–The overall production of high-grade NPI is likely to increase by over 10% this month to 33,100 mt in metal content.
Courtesy: Kedia Commodities
Source: Commodityonline.com
