MCX Copper may trade in a range between 410.2-422
Natural Gas market under long liquidation; Support seen at 240
MCX Aluminium expected to trade between 130-135.4 levels
MCX Mentha Oil under short covering
NCDEX Chana under long liquidation; Support seen at 4299
Technically MCX Nickel is getting support at 751.9 and below same could see a test of 747.6 level, And resistance is now likely to be seen at 763.6, a move above could see prices testing 771.
Nickel on MCX settled down 0.34% at 756.30 as investors were cautious overnight, with trading volumes thinning. SHFE nickel is expected to trade range bound today as the year-end eroded trading enthusiasm among investors.
Pressure also seen as business confidence among entrepreneurs in China worsened in the fourth quarter compared with the previous one, and was at the lowest since the second quarter of 2017, according to a survey by the People’s Bank of China published on Monday.
Last night SHFE base metals, except for copper and aluminium, traded lower across the board overnight. Nickel dropped some 1.3%, lead fell 1.1% zinc dipped 0.1%. While the LME was closed on Tuesday for Christmas.
The US dollar fell against the major safe-haven as investors cut their exposure to riskier assets amid the partial US government shutdown and signs of confrontation between the White House and the Federal Reserve.
China took further steps in opening up its market on Tuesday by rolling out a shorter negative list for market access. The latest version of the negative list for market access consists 151 items and 581 rules, down by 177 and 288, respectively, compared with the previous version.
The negative list outlines sectors, fields and businesses that are off-limits for investors. Industries not on the list are open for investment to all market players. China started to pilot the negative-list approach in 2016 in the country’s four provincial regions with free trade zones. The pilot practice was extended to another 11 provincial regions in 2017.
Trading Ideas:
–Nickel trading range for the day is 747.6-771.
–Nickel dropped on worries about a global economic slowdown amid higher U.S. interest rates and the U.S.-China trade dispute.
–China is expected to see a well-supplied nickel ore market in 2019 as Indonesian authorities allocated more export quota.
–Nickel ore inventories across all Chinese ports shrank by 60,000 wmt from a week ago to stand at 13.7 million wmt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
