MCX Aluminium may trade between 130.5-132.3 levels
Commodity Online | November 19 2019
UPDATED 11:20:06 IST

MCX Mentha Oil under fresh buying; Resistance seen at 1321.4

NCDEX Chana under fresh buying; Resistance seen at 4423

MCX Cotton under fresh selling; Support seen at 19000

NCDEX Jeera under fresh buying; Support seen at 15790

MCX Aluminium may trade between 131.7-133.1 levels

Technically market is under long liquidation as market has witnessed drop in open interest by 8.68% to settled at 2178 while prices down 0.15 rupees.

Now Aluminium is getting support at 130.9 and below same could see a test of 130.5 levels, and resistance is now likely to be seen at 131.8, a move above could see prices testing 132.3.

Aluminium prices held below 131.50 level market as aluminium inventories in LME-registered warehouses rose by 44,200 tonnes to a little under 1.1 million tonnes, the highest since June. Also the tariff war has hampered global economic activity and pushed metals prices sharply lower.

Meanwhile China's industrial output grew significantly slower than expected in October, underlining fears of a sharp drop in demand in the world's largest consumer of metals. Continued decline in domestic stocks of primary aluminium suggested limited weakness in consumption.

This, coupled with reports of the heating-season output curbs, also limited the downside. In October, China’s production of primary aluminium fell 1.8% year on year to 2.88 million mt, while production of alumina rose 3.6% to 5.97 million mt.For the first 10 months of 2019, production of primary aluminium totalled 29.24 million mt, up 0.7% on a yearly basis, and that of alumina rose 4.4% during the same period to 60.77 million mt.

Aluminium inventories in LME-approved warehouses jumped 91,075 tonnes or 8.6% to 1.2 million tonnes. They have added about 22% since Nov. 12. Russian aluminium group Rusal has faced tough negotiations with clients over 2020 supply contracts as trade wars and an economic slowdown have created a "buyer's market" for the metal.

Trading Ideas:
--Aluminium trading range for the day is 130.5-132.3.
--Aluminium prices held below 131.50 level market as aluminium inventories in LME-registered warehouses rose by 44,200 tonnes to a little under 1.1 million tonnes.
--Continued decline in domestic stocks of primary aluminium suggested limited weakness in consumption.
--Aluminium inventories in LME-approved warehouses jumped 91,075 tonnes or 8.6% to 1.2 million tonnes.

Courtesy: Kedia Commodities

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