Post Leads  |
 
MCX Aluminium may trade between 138.2-140 levels
Commodity Online | September 20 2019
UPDATED 10:10:20 IST

NCDEX Chana under fresh buying; Resistance seen at 4363

MCX Cotton under short covering; Resistance seen at 19650

NCDEX Jeera may trade between 16185-16875 levels

NCDEX Turmeric under fresh buying; Resistance seen at 6102

NCDEX Mustard Seed under fresh selling; Support seen at 4070

Technically Aluminium market is under short covering as market has witnessed drop in open interest by 5.11% to settled at 1821 while prices up 0.15 rupees.

Now MCX Aluminium is getting support at 138.7 and below same could see a test of 138.2 levels, and resistance is now likely to be seen at 139.6, a move above could see prices testing 140.

Aluminium settled flat on concerns about global economic growth and the robust greenback after the Fed gave an uncertain outlook on future easing. The US dollar strengthened after the Federal Reserve cut interest rates as expected, but failed to signal more easing in 2019.

The US central bank cut the overnight rate by 25 basis points to a range of 1.75% to 2%, as was widely expected. This is the second time this year the Fed has lowered rates. China’s output of alumina fell in August to the lowest monthly level since November 2018, losing 2.9% from July to 6.04 million mt, according to data from the NBS. This was 3.5% higher than August 2018.

Alumina output in the January-August period totaled 49.88 million mt, with a year-over-year increase of 5.8%. Production of primary aluminium dipped 0.4% month on month and 0.3% year on year to 2.97 million mt in August, showed NBS data. This brought primary aluminium output in January-August to 23.47 million mt, up 1.4% from the same period a year earlier.

Social inventories of primary aluminium in China fell this week for a fourth straight week, as some regions saw more outflows. This week’s decline in overall inventories, however, was capped by greater arrivals at Wuxi. Data showed that stocks across eight consumption areas in China, including SHFE warrants, decreased by 6,000 mt from a week ago to stand at 966,000 mt.

Trading Ideas:
--Aluminium trading range for the day is 138.2-140.
--Aluminium settled flat on concerns about global economic growth and the robust greenback after the Fed gave an uncertain outlook on future easing.
--China’s output of alumina fell in August to the lowest monthly level since November 2018, losing 2.9% from July to 6.04 million mt.
--Production of primary aluminium dipped 0.4% month on month and 0.3% year on year to 2.97 million mt in August, showed NBS data.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 2 9890.00
Coconut Oil 2.5 17200.00
Arecanut 0.3 21000.00
Sugar 0.4 4000.00

More