MCX Aluminium may trade between 144.1-146.5 levels
Commodity Online | September 17 2020
UPDATED 10:40:29 IST

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MCX Zinc under long liquidation; Resistance seen at 196.7

MCX Copper under short covering; Resistance seen at 535.3

Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 7.12% to settled at 561 while prices down 0.6 rupees.

Now MCX Aluminium is getting support at 144.6 and below same could see a test of 144.1 levels, and resistance is now likely to be seen at 145.8, a move above could see prices testing 146.5.

Aluminium yesterday settled down by 0.41% at 144.95 as investors awaited the Federal Reserve's view on the economy at the end of its policy meeting, although upbeat Chinese and U.S. economic data is likely to give sentiment a tailwind.

China's aluminium production in August rose 2.3% from a month earlier, setting a record high for a second month. China's aluminium production in August rose 2.3% from a month earlier, setting a record high for a second month, fuelled by increasing output at smelters and robust demand outlook.

The world's top aluminium producer churned out 3.17 million tonnes of primary aluminium last month, the National Bureau of Statistics (NBS) said. That was up from 3.1 million tonnes July and an increase of 5.5% from August 2019.

Imports of unwrought aluminium alloy stood at 131,000 mt in June, rising 88.3% from May and surging 754.5% from a year earlier, and totalled 466,500 mt in the first half of 2020, soaring 706.1% from the same period last year, according to the latest customs data.

Orders for imported aluminium alloy rose sharply from late April as its demand surged, and almost all these cargoes arrived in June. However, imports are expected to fall below 100,000 mt in July as orders decreased in June.

Trading Ideas:
--Aluminium trading range for the day is 144.1-146.5.
--Aluminium dropped as investors awaited the Federal Reserve's view on the economy at the end of its policy meeting.
--China's aluminium production in August rose 2.3% from a month earlier, setting a record high for a second month.
--China August aluminium output hits new high on decent prices, firm demand.

Courtesy: Kedia Commodities