Technically Aluminium market is under short covering as market has witnessed drop in open interest by 7.86% to settled at 504 while prices up 0.25 rupees.
Now MCX Aluminium is getting support at 151.3 and below same could see a test of 150.4 levels, and resistance is now likely to be seen at 152.8, a move above could see prices testing 153.4.
Aluminium yesterday settled up by 0.16% at 152.05 as shortages of aluminium for financing deals have significantly boosted prices.
The White House and House Speaker Nancy Pelosi boosted hopes for a large fiscal stimulus package.The IMF downgraded its forecast for Asia-Pacific to 2.2% in 2020 “the worst outcome for this region in living memory.”
“Our latest Regional Economic Outlook shows that a recovery started in the third quarter, but growth engines are not all firing with the same power across countries, leading to a multispeed recovery,” Jonathan D. Ostry, acting director of the Asia and Pacific Department at the IMF, wrote in a blog post.
Global primary aluminium output fell to 5.424 million tonnes in September from revised 5.524 million tonnes in August, data from the International Aluminium Institute (IAI) showed. Estimated Chinese production fell to 3.15 million tonnes in September from revised 3.184 million tonnes in August.
The U.S. Department of Commerce will investigate aluminum foil imported from Armenia, Brazil, Oman, Russia and Turkey for potential dumping or unfair subsidies, it said in a statement.China's aluminium production in September rose 7.9% from a year earlier, official data showed, setting a record daily output as strong prices and new smelter launches boosted supply.
--Aluminium trading range for the day is 150.4-153.4.
--Aluminium prices gained as shortages of aluminium for financing deals have significantly boosted prices.
--The White House and House Speaker Nancy Pelosi boosted hopes for a large fiscal stimulus package.
--Global primary aluminium output fell to 5.424 million tonnes in September from revised 5.524 million tonnes in August.
Courtesy: Kedia Commodities