MCX Aluminium likely to move in a range of 111.1-113.7
Commodity Online | October 14 2016
UPDATED 14:21:34 IST

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Aluminium on MCX settled up 0.71% at 112.75, tracking firmness in LME prices closing up 0.5 percent at $1,692, after touching $1,693.50, its highest since Aug. 18. China's September exports fell 10 percent from a year earlier, far more than expected, while imports unexpectedly shrank after picking up in August, deepening concerns over the latest depreciation in China's yuan currency. U.S. data on Thursday showed the number of Americans filing for unemployment benefits held at a 43-year low last week. The Fed on Wednesday released the minutes of its last rate-setting meeting, which showed several policymakers felt a rate hike was warranted "relatively soon" if the U.S. economy continued to strengthen.

Stocks of aluminium in LME registered warehouses have fallen more than 25 percent since March to 2.12 million tonnes, which has tightened the LME market. In reality, however, supplies are abundant and global inventories are estimated at about 15 million tonnes. China accounts for more than half of global production estimated this year at around 59 million tonnes. The German economy will lose some steam in the second half of the year after its robust performance in the first half, the Economy Ministry said, putting a damper on growth hopes after better-than-expected economic data.

China hopes to boost private investment by improving financial services for small enterprises, its powerful state planner said in a document. Technically market is under fresh buying as market has witnessed gain in open interest by 25.17% to settled at 5003 while prices up 0.8 rupee, now Aluminium is getting support at 111.9 and below same could see a test of 111.1 level, and resistance is now likely to be seen at 113.2, a move above could see prices testing 113.7.

Trading Ideas:
--Aluminium trading range for the day is 111.1-113.7.
--Aluminium on MCX settled up 0.71% at 112.75, tracking firmness in LME prices closing up 0.5 percent at $1,692.
--Stocks of aluminium in LME warehouses have fallen more than 25 percent since March to 2.12 million tonnes, which has tightened the LME market.
--Import prices in the U.S. saw a modest uptick in the month of September, according to a report released by the Labor Department.

Courtesy: Kedia Commodities