MCX Zinc expected to trade between 192-205.8 levels
MCX Copper likely to trade between 442.6-449.2 levels
MCX Natural Gas expected to trade between 187.9-196.7 levels
MCX Crude Oil may trade in a range between 3750-4018
MCX Nickel likely to move in a range of 905.9-965.5
Technically Aluminium market is under short covering as market has witnessed drop in open interest by 8.1% to settled at 4049 while prices up 0.2 rupees.
Now MCX Aluminium is getting support at 137 and below same could see a test of 136.1 level, And resistance is now likely to be seen at 138.8, a move above could see prices testing 139.7.
Aluminium on MCX settled up 0.15% at 137.80 tracking firmness from LME aluminium prices which gained by 0.2% to settled $US1922 a tonne on short covering while sentiments remain caution as investors waited to see if U.S.
President Donald Trump drops any hints of progress on tariffs in his State of the Union speech. Base metals prices on the London Metal Exchange were mixed with most metals consolidating gains made at Monday’s close while low stocks and a weaker dollar fail to prompt upward price action.
Across trading on Monday, nickel, zinc and lead futures rallied to reach fresh highs, with low liquidity due to the Chinese New Year holidays contributing to a flurry of buying. Meanwhile concerns over slowing factory activity in China – the world’s biggest industrial metals consumer.
As China’s factory activity shrank by the most in almost three years in January as new orders slumped further and output fell, a private survey showed, reinforcing fears that a slowdown in the world’s second-largest economy is deepening.
Now market players will keep an eye out on the Prelim Nonfarm Productivity q/q & Trade Balance data to gauge the strength of the economy. Also Federal Reserve Chairman Jerome Powell dined Monday night with Trump and Treasury Secretary Steven Mnuchin, the central bank said in a statement.
Trading Ideas:
–Aluminium trading range for the day is 136.1-139.7.
–Aluminium remained flat on worries about excess supply after the top producer said it would resume some output.
–China Hongqiao Group, said it would gradually restart production after the expiration of some government-mandated output curbs.
–U.S. President Trump said over the weekend that he was optimistic about the prospects of a deal after the good vibe of negotiations.
Courtesy: Kedia Commodities
Source: Commodityonline.com
