Technically Aluminium market is under short covering as market has witnessed drop in open interest by 2.08% to settled at 1927 while prices up 0.45 rupees.
Now MCX Aluminium is getting support at 193.3 and below same could see a test of 191.8 levels, and resistance is now likely to be seen at 195.7, a move above could see prices testing 196.6.
Aluminium yesterday settled up by 0.23% at 194.7 amid improving demand prospects due to a global economic recovery and increased investments in green initiatives.
Prices gained as support seen as social inventories of aluminium ingots stood at 1.14 million mt in China as of April 26, down 1,000 mt from last Thursday.
The Federal Open Market Committee ends its two-day meeting on Wednesday, and while no major policy changes are expected, investors will pay close attention to comments from Chairman Jerome Powell.
Powell is likely to face questions over whether an improving labor market and rising coronavirus vaccinations warrant a withdrawal of monetary easing. Most analysts though expect him to say such talk is premature, which could put downward pressure on Treasury yields and the dollar.
German business sentiment rose by less than expected in April, the Ifo Institute’s business climate index revealed Monday, as a third wave of Covid-19 infections and industrial sector supply problems weighed on the recovery of Europe’s largest economy.
The sales volume of new residential buildings in the US reached the highest level since 2006 in March. In April, the PMI of Britain showed that the economic activity had the fastest growth rate in seven years, and the retail sales in March had the biggest growth rate in nine months.
--Aluminium trading range for the day is 191.8-196.6.
--Aluminium prices gained amid improving demand prospects due to a global economic recovery and increased investments in green initiatives.
--Prices gained as support seen as social inventories of aluminium ingots stood at 1.14 million mt in China, down 1,000 mt.
--Primary aluminium ingot inventories in China fell, showed data.
Courtesy: Kedia Commodities