Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 23.05% to settled at 2498 while prices up 3.7 rupees.
Now MCX Aluminium is getting support at 230.7 and below same could see a test of 226.8 levels, and resistance is now likely to be seen at 236.9, a move above could see prices testing 239.2.”
“Aluminium yesterday settled up by 1.6% at 234.45 as the People’s Bank of China continued to inject a net CNY 100 billion of 14-day reverse repos at an interest rate of 2.35 percent on September 28th 2021, the same as in the previous day, the eighth day of injections.
The PBoC has injected a net CNY 710 billion of short-term cash into the banking system in the eight-day. China’s second largest private property developer Evergrande missed an USD 83.5 million payment in bond interest to its offshore bondholders on September 23rd.
PBoC vowed to protect consumers exposed to the housing market on Monday, as the Shenzhen government began investigating the wealth management unit of ailing developer Evergrande, the clearest sign yet the authorities could move to contain contagion risks.
The PBOC’s statement was issued after the third quarter meeting of its Monetary Policy Committee. The social inventory of aluminium trended up again due to suppressed downstream demand on the back of power rationing in Jiangsu, Guangdong and Shandong.
The fourth batch of government reserves to be released has been officially announced. Global primary aluminium output dropped to 5.699 million tonnes in August from a downwardly revised 5.733 million tonnes in July, data from the International Aluminium Institute (IAI) showed.
Trading Ideas:
–Aluminium trading range for the day is 226.8-239.2.
–Aluminium prices rose the People’s Bank of China continued to inject a net CNY 100 billion of 14-day reverse repos at an interest rate of 2.35 percent.
–The social inventory of aluminium trended up again due to suppressed downstream demand on the back of power rationing.
–The fourth batch of government reserves to be released has been officially announced.
Courtesy: Kedia Commodities
Source: Comodity Online
