Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 1.44% to settled at 4297 while prices up 0.2 rupees.
Now MCX Aluminium is getting support at 137.6 and below same could see a test of 137.2 level, and resistance is now likely to be seen at 138.4, a move above could see prices testing 138.8.
Aluminium on MCX settled up 0.15% at 138.05 gained on fresh buying tracking Three-month LME aluminium recovered on Tuesday, ending up 0.26% on the day at $1,721.5/mt, but the increase remained capped by a strengthened US dollar.
The Chinese government encourages the resumption of companies, but the recovery of demand from end-users remains limited. Meanwhile disappointing earnings news from Walmart also weighed on stocks and prompted investors to seek the safe haven asset.
The Chinese central bank's recent move to cut lending rates to boost growth contributed as well to metals rise. The dollar gained as well thanks to its safe-haven appeal. The dollar index advanced to 99.47, and was last seen at 99.40, up 0.4% from previous close. Weakness also seen after Apple Inc said it expects to miss its forecast for second quarter revenue of $63 billion to $67 billion due to lower iPhone production and weak Chinese demand as a result of the coronavirus outbreak.
Sino-U.S. trade news was back in focus following today’s reports that China will grant tariff exemptions on 696 additional U.S. goods. The news came one month after Beijing and Washington signed the phase 1 trade deal. Under the agreement, China will boost its purchases of goods and services from the U.S. by $200 billion over two years. Now a day ahead traders will be eyeing Key economic data slated for release today including the US building permits, housing starts and PPI for January, as well as its weekly crude oil change surveyed by the API.
--Aluminium trading range for the day is 137.2-138.8.
--Aluminium gained on fresh buying tracking Three-month LME aluminium recovered.
--Aluminium gains will remain capped by a strengthened US dollar.
--Some overseas buyers of Chinese metal products have stopped accepting shipments.
Courtesy: Kedia Commodities