Technically Aluminium market is under short covering as market has witnessed drop in open interest by 3.35% to settled at 4582 while prices up 0.05 rupees.
Now MCX Aluminium is getting support at 137.8 and below same could see a test of 137.2 level, and resistance is now likely to be seen at 138.8, a move above could see prices testing 139.2.
Aluminium on MCX settled up 0.04% at 138.35 traded in the range tracking LME Aluminium which was almost unchanged at 13,770 yuan a tonne as uncertainty over the impact of the coronavirus outbreak in China capped gains even though hopes rose that the worst might have passed.
The coronavirus outbreak in China may be over by April, the country’s senior medical adviser said, while the number of new cases fell to the lowest since Jan. 31, brightening the mood.However, concerns remained around the impact that the virus could have on factory activity and consumer spending in the world’s second-largest economy.
Greater arrivals in the spot market and delayed recovery of demand buoyed social inventories of primary aluminium. A day ahead traders are eyeing for the US will publish data on its consumer price index (CPI) for January and the weekly unemployment claims. Germany will also release data on its January CPI.
--Aluminium trading range for the day is 137.2-139.2.
--Aluminium traded in the range tracking LME Aluminium which was almost unchanged.
--Uncertainty over the impact of the coronavirus outbreak in China capped gains.
--Greater arrivals in the spot market and delayed recovery of demand buoyed social inventories.
Courtesy: Kedia Commodities