Technically Aluminium market is under short covering as market has witnessed drop in open interest by 3.99% to settled at 1563 while prices up 0.4 rupees.
Now MCX Aluminium is getting support at 133.1 and below same could see a test of 132.6 levels, and resistance is now likely to be seen at 133.9, a move above could see prices testing 134.2.
Aluminium on MCX settled up 0.3% at 133.55 as the continued decline in social inventories of primary aluminium kept supporting prices. The US dollar edged down but held in its recent range against a basket of other currencies as investors monitored friction between the US and China over the Hong Kong protests.
US President Donald Trump signed into law two bills backing protesters in Hong Kong on Wednesday, setting off a clash with China which had objected to such legislation. And China warned that it would take “firm counter-measures” if the US continued to interfere in Hong Kong.
On the data front, eurozone economic sentiment rebounded more than expected in November on consumer and retail trade. Data from the European Commission on Thursday showed economic sentiment across the currency bloc’s 19 countries rose to 101.3 points in November from 100.8 in October. Social inventories of primary aluminium in China fell faster this week, data showed.
Stocks across eight consumption areas in China, including SHFE warrants, decreased by 44,000 mt from a week ago to 755,000 mt as of Thursday November 28, after a decline of 35,000 mt in the previous week. In China, industrial profits shrank at their fastest pace in eight months in October, official data showed, tracking sustained drops in producer prices and exports and underscoring slowing momentum in the world’s second-largest economy.
--Aluminium trading range for the day is 132.6-134.2.
--Aluminium gained as the continued decline in social inventories of primary aluminium kept supporting prices.
--Social inventories of primary aluminium in China fell faster, data showed.
--Investors monitored friction between the US and China over the Hong Kong protests. US President Donald Trump signed into law two bills backing protesters in Hong Kong.
Courtesy: Kedia Commodities