MCX Aluminium may trade between 197.9-202.1 levels
Commodity Online | July 26 2021
UPDATED 10:40:37 IST

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MCX Aluminium may trade between 223.6-232.6 levels

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MCX Zinc under short covering; Resistance seen at 258.8

MCX Copper under long liquidation; Support seen at 683.8

Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 60.64% to settled at 1616 while prices up 2.05 rupees.

Now MCX Aluminium is getting support at 199.2 and below same could see a test of 197.9 levels, and resistance is now likely to be seen at 201.3, a move above could see prices testing 202.1.

Aluminium yesterday settled up by 1.03% at 200.4 supported by tight global supply and continued robust demand from the automotive, packaging, and construction sectors.

Demand for the metal used in cars and planes has bounced back strongly from the coronavirus-induced blow, with global aluminum consumption seen rising 8% to around 69 million this year.

U.S. business activity grew at a moderate pace for a second straight month in July amid supply constraints, suggesting a cooling in economic activity after what was expected to have been a robust second quarter.

Data firm IHS Markit said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to a four-month low of 59.7 from 63.7 in June.

The European Central Bank maintained its benchmark interest rate and the scale of asset purchases, but revised its forward guidance to link policy adjustments more closely to the new 2% inflation target.

Bank President Lagarde made dovish statement that the monetary policy would not be tightened too early. The initial jobless claims in US for rose last week rose unexpectedly, making the largest increase since late March, highlighting the turbulent situation in the job market, and market concerns eased.

Trading Ideas:
--Aluminium trading range for the day is 197.9-202.1.
--Aluminium rose supported by tight global supply and continued robust demand from the automotive, packaging, and construction sectors.
--U.S. business activity grew at a moderate pace for a second straight month in July amid supply constraints.
--The European Central Bank maintained its benchmark interest rate and the scale of asset purchases.

Courtesy: Kedia Commodities

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