MCX Aluminium may trade between 129.3-132.1 levels
Commodity Online | May 27 2020
UPDATED 10:40:45 IST

MCX Mentha Oil likely to move in a range of 971.1-996.9

MCX Aluminium may trade between 137-139.2 levels

MCX Nickel likely to move in a range of 957.6-994.2

MCX Zinc under short covering; Resistance seen at 165

MCX Copper under fresh buying; Support seen at 462.2

Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 9.78% to settled at 797 while prices up 0.8 rupees.

Now MCX Aluminium is getting support at 130.2 and below same could see a test of 129.3 levels, and resistance is now likely to be seen at 131.6, a move above could see prices testing 132.1.

Aluminium yesterday settled up by 0.61% at 130.95 as investors anticipated that more stimulus measures from China will bolster demand.Investors will also continue to watch for developments from China’s National People’s Congress (NPC)—the country’s annual session of parliament.

Expectations into the NPC meetings were high among metal industry participants, particularly in regards to more expectations around stimulus. However so far there is little in the way of major new announcements, just more of a reconfirmation of existing supporting policies.

Global primary aluminium output fell to 5.255 million tonnes in April from revised 5.464 million tonnes in March, data from the International Aluminium Institute (IAI) showed on Wednesday. Estimated Chinese production fell to 2.978 million tonnes in April from revised 3.095 million tonnes in March, it added.

China will strengthen its economic policy and counter-cyclical adjustments and continue to push to lower interest rates on loans, central bank Governor Yi Gang said. Yi, in an interview published by the central bank, said China’s economic fundamentals are unchanged despite many uncertainties and reiterated that the central bank’s prudent monetary policy will be more flexible.The economy shrank 6.8% in the first quarter, the first contraction in decades, hit by the outbreak of the new coronavirus.

Trading Ideas:
--Aluminium trading range for the day is 129.3-132.1.
--Aluminium gained as investors anticipated that more stimulus measures from China will bolster demand.
--Global primary aluminium output fell to 5.255 million tonnes in April from revised 5.464 million tonnes in March.
--China will strengthen its economic policy and counter-cyclical adjustments and continue to push to lower interest rates on loans.

Courtesy: Kedia Commodities