Mentha Oil market under long liquidation; Support seen at 1701.5
Aluminium may trade between 143.4-147.8 levels
MCX Nickel likely to trade in a range between 879.6-918.2
MCX Copper expected to trade between 417.1-435.9 levels
MCX Natural Gas may trade between 196.8-204.2 levels
Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 12.97% to settled at 9684 while prices down 2.15 rupees.
Now MCX Zinc is getting support at 164.7 and below same could see a test of 163.2 levels and resistance is now likely to be seen at 169, a move above could see prices testing 171.8.
Zinc on MCX settled down 1.28% at 166.3 tracking weakness in LME prices finished down 1.1 percent at $2,334 a tonne amid continued trade disagreements between the United States and China, while fresh economic data indicates more stability in the Chinese economy.
The economic data from China tallied largely with expectations, though growth in fixed asset investments was lower than ever before at 5.3% in August. Overall, the economic data point to a stabilizing economy in China.
Elsewhere, US-Sino trade relations could benefit from further talks before a third round of US-imposed tariffs on Chinese good take effect. While commodity investment has dwindled as a result, volatile currencies from emerging markets have fueled recent surges in the dollar index, pushing it to a fresh 2018 high of 96.99 on August 15.
Social inventories of refined zinc across Shanghai, Tianjin and Guangdong extended their weekend gains in the week as weak consumption failed to deplete inflows of imported materials in an open import arbitrage window.
Arrivals from domestic smelters also bolstered inventories. Stocks stood at 117,800 mt as of Friday September 14, up 2,600 mt from Monday and 6,400 mt from last Friday. Zinc social inventories across the three regions to continue to increase.
China’s home prices accelerated in August at the fastest pace in nearly two years, a sign that Beijing’s efforts to boost a slowing economy may once again be heating up frothy real estate markets.
Trading Ideas:
–Zinc trading range for the day is 163.2-171.8.
–Zinc dropped tracking weakness in LME prices finished down 1.1 percent amid continued trade disagreements between the United States and China.
–China reported better-than-expected industrial output and retail sales, although a key investment gauge fell to a record-low.
–China’s growth looks set to cool further in coming months, with a barrage of August economic data doing little to dispel views that domestic demand is softening.
Courtesy: Kedia Commodities
Source: Commodityonline.com
