Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 17.88% to settled at 1905 while prices down 0.4 rupees.
Now MCX Aluminium is getting support at 199.3 and below same could see a test of 198.4 levels, and resistance is now likely to be seen at 201.2, a move above could see prices testing 202.2.
Aluminium yesterday settled down by 0.2% at 200 on profit boooking after prices gained as SHFE prices reached its highest since May 19 of 19,750 yuan a tonne as the global economic recovery supported increased demand for the metal.
Support also seen as social aluminium inventories shrank 47000 mt to 782000 mt. The second release of government reserves stood at 90000 mt, lower than market expectation and pulling up again aluminium prices as a result of market sentiments.
Attention shall be paid to the influence of power restrictions to supply and demand, flood in Henan, inventory pivot as well as changes in preferences for short. The US Markit manufacturing PMI in July came in at 63.1 on Friday, setting a new record high.
However, the service industry PMI unexpectedly fell to a low of nearly five months, indicating that the current economic recovery is still uneven. The mixed economic data and the spreading pandemic continued to ease market concerns about early capital contraction.
Global primary aluminium output fell to 5.549 million tonnes in June from revised 5.75 million tonnes in May, data from the International Aluminium Institute (IAI) showed. Estimated Chinese production fell to 3.245 million tonnes in June from revised 3.35 million tonnes in May, it added.
--Aluminium trading range for the day is 198.4-202.2.
--Aluminium dropped on profit boooking after prices gained as the global economic recovery supported increased demand.
--Social aluminium inventories shrank 47000 mt to 782000 mt.
--The second release of government reserves stood at 90000 mt, lower than market expectation.
Courtesy: Kedia Commodities