Nickel market under short covering; Support seen at 770.9
MCX Copper likely to trade in a range between 429.5-443.9
MCX Natural Gas likely to trade in a range between 289.5-343.3
NCDEX Soyabean under fresh buying; Resistance seen at 3344
NCDEX Ref.Soya Oil under fresh buying; Support seen at 731
Technically Zinc market is under short covering as market has witnessed drop in open interest by 6.05% to settled at 2547 while prices up 0.85 rupees.
Now Zinc is getting support at 186.6 and below same could see a test of 185 levels and resistance is now likely to be seen at 190.2, a move above could see prices testing 192.2.
Zinc on MCX settled up 0.45% at 188 as zinc stockpiles in LME warehouses dropped to a near 11-year low and Shanghai stockpiles seen at its lowest since April 2007 by the end of last week.
LME warehouse stocks have reached a temporary plateau amid a slight increase in flows, with a further 3,100 tonnes delivered into warehouses in Rotterdam. LME stocks total 113,125 tonnes, although this is still down from 256,175 tonnes in mid-August.
Social inventories of refined zinc across Shanghai, Guangdong and Tianjin came in at 108,400 mt as of Friday December 7, down 3,100 mt from Monday December 3 and 2,600 mt from Friday November 30, data showed. Between Monday and Friday, stocks in Shanghai decreased by 2,900 mt, or 6.7%, as reduced seaborne arrivals failed to offset downstream purchases.
China’s output of refined zinc in November dipped 0.63% on the month and stood at 456,400 mt. This was down 10.4% from a year earlier, and brought the output in January-November to some 4.88 million mt, standing 1.95% lower than the same period last year.
Treatment charges (TCs) for zinc concentrate extended their gains last month and this bolstered producing enthusiasm across domestic smelters. Some smelters raised output by 500-1,000 mt in November on top of their regular production.
Hunan Xuanhua Zinc Industry recovered operation in the second half of November. However, these failed to offset declines in output affected by mill relocation.
Trading Ideas:
–Zinc trading range for the day is 185-192.2.
–Zinc prices gained as zinc stockpiles in LME warehouses dropped to a near 11-year low and Shanghai stockpiles seen at its lowest since April 2007.
–China’s output of refined zinc in November dipped 0.63% on the month and stood at 456,400 mt.
–Treatment charges (TCs) for zinc concentrate extended their gains last month and this bolstered producing enthusiasm across domestic smelters.
Courtesy: Kedia Commodities
Source: Commodityonline.com
