Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 25.64% to settled at 2984 while prices up 4.15 rupees.
Now MCX Aluminium is getting support at 203.1 and below same could see a test of 199.8 levels, and resistance is now likely to be seen at 208.1, a move above could see prices testing 209.8.
Aluminium yesterday settled up by 2.05% at 206.3 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.
Still, China’s plans to continue releasing industrial metals from its reserves amid efforts to ease commodity price hikes and cost pressure on firms, concerns over the spread of the delta variant, and a surging dollar limited upside momentum in the near term.
The U.S. economy contracted at a record average annualized rate of 19.2% from its peak in the fourth quarter of 2019 through the second quarter of 2020, government data showed, confirming that the COVID-19 recession was the worst ever.
The pace of recovery from the pandemic downturn, the deepest going back to 1947, was equally stunning. The Commerce Department's Bureau of Economic Analysis said gross domestic product rebounded at a historic average rate of 18.3% between the second and fourth quarter of 2020.
Germany’s annual consumer price inflation accelerated by more than expected to hit a 13-year high in July, leading services sector trade union Verdi to immediately demand “strong wage increases”.
--Aluminium trading range for the day is 199.8-209.8.
--Aluminium prices rose supported by tight global supply and continued robust demand from the automotive, packaging, and construction sectors.
--The U.S. economy contracted at a record average annualized rate of 19.2% from its peak in the fourth quarter of 2019.
--German inflation hits 13-yr high, union demands "strong wage increases".
Courtesy: Kedia Commodities