MCX Aluminium may trade between 131.8-133.8 levels
Commodity Online | December 06 2019
UPDATED 10:10:36 IST

MCX Mentha Oil likely to move in a range of 967.8-1014.8

NCDEX Chana under fresh selling; Support seen at 4227

MCX Cotton under long liquidation; Support seen at 16230

MCX Aluminium may trade between 145.5-147.5 levels

MCX Nickel likely to move in a range of 1064.7-1102.5

Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 0.11% to settled at 1791 while prices down 0.6 rupees.

Now MCX Aluminium is getting support at 132.2 and below same could see a test of 131.8 levels, and resistance is now likely to be seen at 133.2, a move above could see prices testing 133.8.

Aluminium on MCX settled down 0.45% at 132.6 on profit booking amid on renewed optimism on a US-China trade deal. Lingering uncertainty around trade talks and heightened concerns about US economy after the recent release of disappointing data, however, capped gains.

China issued a fresh batch of import quotas for aluminium scrap for 2019, with the quota volume declining sharply as expected. The China Solid Waste and Chemicals Management Bureau, a unit of the Ministry of Ecology and Environment, issued import quotas for another 9,844 mt of aluminium scrap.

The latest batch of quotas was allocated to 15 companies, which have obtained 13,834 mt of import quotas for the fourth quarter, down 70.52% from 46,930 mt from Q319. China has granted three batches of import quotas of a cumulative total of 68,549 mt for aluminium scrap for Q4, down 83.09% from 405,416 mt in all the four batches of quotas for Q319.

Data from China customs showed that about 459,000 mt of foreign aluminium scrap was imported into China in July to October, after restrictions on imports of Category 6 metal scrap came into force on July 1. Social inventories of primary aluminium in China fell faster this week, data showed, due to robust demand. Stocks across eight consumption areas in China, including SHFE warrants, decreased by 50,000 mt from a week ago to 705,000 mt as of Thursday December 5, after a decline of 44,000 mt in the previous week.

Trading Ideas:
--Aluminium trading range for the day is 131.8-133.8.
--Aluminium dropped on profit booking amid on renewed optimism on a US-China trade deal.
--China issued a fresh batch of import quotas for aluminium scrap for 2019, with the quota volume declining sharply as expected.
--Social inventories of primary aluminium in China fell faster this week, data showed, due to robust demand.

Courtesy: Kedia Commodities