MCX Crude Oil expected to trade in a range between 5152-5304
MCX Silver likely to trade in a range between 37558-38450
MCX Nickel likely to move in a range of 907.9-952.9
MCX Menthol Oil likely to move in a range of 1603.7-1679.5
MCX Cotton under fresh selling; Support seen at 22140
Technically Aluminium market is getting support at 147.2 and below same could see a test of 146.2 level, And resistance is now likely to be seen at 149.8, a move above could see prices testing 151.4.
Aluminium on MCX settled down 0.54% at 148.05 from the day’s high of 150.40 tracking firmness from LME aluminium was bid 0.4 percent higher at $2,080 per tonne as support seen after the report that stocks in LME-monitored warehouses fell below a million tonnes for the first time since March 2008 on Wednesday, at 999,925 tonnes.
The China’s aluminium inventory cycle has lingered in a destocking phase for 25 weeks as of Wednesday September 26. As of Tuesday September 25, social inventories of primary aluminium across major consumption areas in China, coming at 1.606 million mt, decreased 29.64% from the peak of 2.284 million mt notched on March 12.
Cuts of production and shutdown of capacities mainly accounted for the shrinking inventories, SMM believes. In March-August, Chinese smelters produced 18.31 million mt of primary aluminium, down 1.6% from the same period in 2017.
In June-September, over 770,000 mt of annual capacities were shut down and some smelters suspended operation to undertake maintenance given high temperatures. Besides, the pace of commissioning new capacities was slow as tumbles in aluminium prices kept smelters running in losses.
Last night the dollar gained in choppy trading after the Fed raised US interest rates as expected for the eighth time, flagged more rate hikes and signaled the end of the “accommodative” policy era.
Now a day ahead traders will be eyeing on key economic data slated for release include China’s August industrial profits, US second-quarter economic growth, August wholesale inventories, durable goods orders and pending home sales and weekly initial jobless claims.
Trading Ideas:
–Aluminium trading range for the day is 146.2-151.4.
–Aluminium dropped as investors have focused their attention back to the fundamentals front after the US and China announced their latest round of tariffs.
–Spot aluminium trades improved from the previous day, but supply still exceeded demand across the market.
–Purchasing enthusiasm among downstream consumers grew as some stockpiled for the National Day holiday, supplies across the market remained sufficient.
Courtesy: Kedia Commodities
Source: Commodityonline.com
