Technically Aluminium market is under short covering as market has witnessed drop in open interest by 13.18% to settled at 3221 while prices up 0.75 rupees.
Now MCX Aluminium is getting support at 129.9 and below same could see a test of 129.1 levels, and resistance is now likely to be seen at 131.2, a move above could see prices testing 131.7.
Aluminium yesterday settled up by 0.58% at 130.7 on investor hopes the economy may mount a quicker recovery were given a boost as all U.S. States partially reopened.
Trade relations between the United States and China have turned sour after Washington expressed disappointment over the way China handled the coronavirus outbreak, raising fears that the countries could escalate their trade conflict and hurt economic growth further.
China's aluminium production rose by 1.5% in April from a year earlier, official data showed, and hit a 10-month high on a daily basis as a rapid rebound in prices after a coronavirus-driven collapse kept smelter operating rates high.
The world's biggest producer and consumer of aluminium churned out 2.97 million tonnes of the metal last month, the National Bureau of Statistics said.
That was flat on the previous month but on a daily basis April output works out at about 99,000 tonnes per day, according to calculations, up from around 95,800 tonnes in March, which had one more day.
Aluminium prices in China , which crashed alongside demand in February and March in the wake of the coronavirus outbreak, staged a strong recovery in April, gaining 9% in their best month since August 2017 after smelters had cut supply and consumption at processing plants rebounded.
--Aluminium trading range for the day is 129.1-131.7.
--Aluminium gains on investor hopes the economy may mount a quicker recovery were given a boost as all U.S. States partially reopened.
--Global primary aluminium output fell to 5.255 million tonnes in April from revised 5.464 million tonnes in March.
--China's aluminium production rose by 1.5 percent to 2.97 million tonnes in April from a year earlier.
Courtesy: Kedia Commodities