MCX Aluminium may trade between 136.1-139.3 levels
Commodity Online | July 03 2020
UPDATED 10:40:14 IST

MCX Mentha Oil likely to move in a range of 923.9-950.5

MCX Aluminium may trade between 139.8-142.6 levels

MCX Nickel likely to move in a range of 1028.6-1057

MCX Zinc under fresh buying; Support seen at 182.6

MCX Copper under long liquidation; Resistance seen at 507.1

Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 2.74% to settled at 924 while prices down 0.95 rupees.

Now MCX Aluminium is getting support at 136.8 and below same could see a test of 136.1 levels, and resistance is now likely to be seen at 138.4, a move above could see prices testing 139.3.

Aluminium yesterday settled down by 0.69% at 137.3 on profit booking after gaining as better-than-expected Chinese factory activity data and the latest stimulus efforts by China’s central bank lifted sentiment.

The US dollar slipped with the market having a modest appetite for risk-taking amid generally upbeat US data and improving European economic numbers.

The Institute for Supply Management said US manufacturing activity grew to its highest level since April 2019, recovering from a sharp contraction in May, while ADP and Moody’s Analytics said US private payrolls jumped by 2.37 million in June and payrolls for May were also revised to a gain of more than 3 million from a loss of 2.76 million.

The calculated market balance for primary aluminium for January to April 2020 was a surplus of 1098 kt which follows a surplus of 749 kt recorded for the whole of 2019. Demand for primary aluminium for January to April 2020 was 20.67 million tonnes, 199 kt more than in the comparable period in 2019.

Demand is measured on an apparent basis and it is likely that the full effects of national lockdowns have not been fully reflected in the trade statistics. Production in January to April 2020 rose by 4.6 per cent. Overall, global production rose in January to April 2020 by 4.6 per cent compared with the first four months of 2019.

Trading Ideas:
--Aluminium trading range for the day is 136.1-139.3.
--Aluminium dropped on profit booking after gaining as better-than-expected Chinese factory activity data lifted sentiment.
--ISM said US manufacturing activity grew to its highest level since April 2019, recovering from a sharp contraction in May.
--The calculated market balance for primary aluminium for January to April 2020 was a surplus of 1098 kt.

Courtesy: Kedia Commodities