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MCX Aluminium may trade between 133.1-134.1 levels
Commodity Online | October 18 2019
UPDATED 10:10:42 IST

MCX Mentha Oil likely to move in a range of 1238.7-1300.3

MCX Aluminium may trade between 134.4-136.6 levels

MCX Nickel under fresh selling; Support seen at 1158.4

MCX Zinc under fresh buying; Support seen at 193.2

MCX Copper under fresh selling; Support seen at 441.1

Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 3.51% to settled at 3240 while prices down 0.45 rupees.

Now MCX Aluminium is getting support at 133.4 and below same could see a test of 133.1 levels, and resistance is now likely to be seen at 133.9, a move above could see prices testing 134.1.

Aluminium on MCX settled down 0.34% at 133.55 due to dimmed outlook for global economic growth and uncertainties around Brexit. China’s consumption held stable as expected, as evidenced by a weekly draw of 61,000 mt in primary aluminium social inventories.

Social inventories of primary aluminium in China declined significantly this week, after an increase in the first week after the National Day holiday, as arrivals shrank sharply while outflows held stable. Data showed that stocks across eight consumption areas in China, including SHFE warrants, decreased by 61,000 mt from a week ago to 916,000 mt as of Thursday October 17.Recovering consumption lowered inventories of aluminium billet in China this week, after the stocks rising during the National Day holiday and days after.

Data showed that stocks of 6063 aluminium billet across five major consumption areas in China declined 7,600 mt from October 10 to stand at 129,200 mt as of Thursday October 17.China’s economic growth is expected to slow to a near 30-year low of 6.2% this year and cool further to 5.9% in 2020, underlining the stiff challenge faced by Beijing even as it steps up stimulus amid a bruising Sino-U.S. trade war. Beijing has been relying on a combination of fiscal stimulus and monetary easing to weather the current slowdown, but the room for aggressive policy action has been limited by worries over debt and housing risks.

Trading Ideas:
--Aluminium trading range for the day is 133.1-134.1.
--Aluminium prices remained under pressure due to dimmed outlook for global economic growth and uncertainties around Brexit.
--China’s consumption held stable as expected, as evidenced by a weekly draw of 61,000 mt in primary aluminium social inventories.
--China’s economic growth is expected to slow to a near 30-year low of 6.2% this year and cool further to 5.9% in 2020, underlining the stiff challenge faced by Beijing.

Courtesy: Kedia Commodities

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