MCX Nickel may trade between 841-882.6 levels
MCX Menthol Oil under fresh buying; Support seen at 1804.6
Silver market under fresh selling; Support seen at 37884
Gold market under fresh selling; Support seen at 31673
Fresh selling seen in MCX Cotton
Technically Aluminium market is getting support at 144.8 and below same could see a test of 144 level, And resistance is now likely to be seen at 146.8, a move above could see prices testing 148.
Aluminium on MCX settled up 0.24% at 145.40 despite the US dollar extended its gains. LME aluminium reversed its earlier gains to a fresh low of $1,953.5/mt, the lowest since August 2017, and closed at $1,955.5/mt overnight. Sentiments may have turned weaker on weaker consumption which extends slow decline in primary aluminium social stocks.
Social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, came in at 1.525 million mt as of Thursday November 1, down some 13,000 mt from Thursday October 25.
Weaker downstream consumption for molten aluminium grew ingot supplies, and this extended slow decline in the social inventories. The stocks shrank some 45,000 mt from Thursday October 18, to stand at 1.538 million mt as of Thursday October 25.
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Last night most LME and SHFE base metals ended in negative territory overnight with LME zinc being the biggest loser, down over 2% on the day. LME nickel tumbled close to 1.9%, lead dropped some 1.4%, aluminium lost 0.5% and copper fell 0.4%.
SHFE nickel slid more than 1.6%, zinc slipped over 1%, copper decreased close to 0.7%, aluminium sank over 0.4% while lead gained 0.25%. The US dollar edged up to a fresh 16-month high against a basket of key currencies on Wednesday as the US economy continued to strengthen, putting the greenback on pace for a seventh straight month of gains.
The ADP national employment report on Wednesday showed that US private sector payrolls increased by the most in eight months in October, suggesting overall job growth accelerated after Hurricane Florence affected restaurant and retail employment in September.
Trading Ideas:
–Aluminium trading range for the day is 144-148.
–Aluminium ended with small gains on short covering after prices remained under pressure amid weaker-than-expected Chinese manufacturing PMI.
–Amid rising headwinds from the Sino-U.S. trade war, China’s official Purchasing Managers’ Index dropped to 50.2 in October from 50.8 in September.
–The latest reading suggests a further slowing in economy and could prompt more policy support from Beijing on top of a raft of recent initiatives.
Courtesy: Kedia Commodities
Source: Commodityonline.com
