Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 4.86% to settled at 950 while prices up 0.3 rupees.
Now MCX Aluminium is getting support at 137.7 and below same could see a test of 137 levels, and resistance is now likely to be seen at 138.8, a move above could see prices testing 139.2.
Aluminium yesterday settled up by 0.22% at 138.25 as support seen with positive manufacturing data from China bolstering market sentiment.
A Caixin/Markit survey showed China’s manufacturing activity expanded and beat expectations in June, with the Caixin/Markit manufacturing purchasing manager’s Index coming in at 51.2, up from 50.7 in May.
Data showed the official PMI for China’s manufacturing sector also ticked up, to 50.9 in June from 50.6 in May.The US Federal Reserve Chairman Jerome Powell on Tuesday expressed worry that a resurgence of coronavirus cases could undermine confidence in the economic recovery.
Poor physical aluminium market conditions have forced people to store excess metal, pushing total aluminium stocks on the London Metal Exchange to more than 1.6 million tonnes. Aluminium stocks rose by 2.9% last week, up for a seventh consecutive week, with inventories now sitting at their highest level since April 2017.
Current on-warrant stock levels now stand at 1.6 million tonnes - 108% higher than on March 2 when 791,850 tonnes of aluminium were in LME sheds and not booked for delivery.
This was prior to Covid-19 disruptions affecting the global aluminium market outside China. Over 71,000 tonnes were delivered in during the week to June 26, taking total LME aluminium stock levels to 1,652,025 tonnes, with the majority delivered into aluminium’s most popular warehouse location.
--Aluminium trading range for the day is 137-139.2.
--Aluminium gains as support seen with positive manufacturing data from China bolstering market sentiment.
--A Caixin/Markit survey showed China’s manufacturing activity expanded and beat expectations in June.
--Poor physical aluminium market conditions have forced people to store excess metal, pushing total aluminium stocks on LME to more than 1.6 million tonnes.
Courtesy: Kedia Commodities