Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 26.6% to settled at 2827 while prices down 2 rupees.
Now MCX Aluminium is getting support at 149.1 and below same could see a test of 148.3 level, And resistance is now likely to be seen at 151.2, a move above could see prices testing 152.5.
Aluminium on MCX settled down 1.32% at 149.80 on fresh selling tracking weakness from Equity markets which were locked in a sharp sell-off, with concern around how far yields will rise, warnings from the IMF about financial stability risks and continued trade tension all driving uncertainty.
Yesterday London Metal Exchange aluminium had edged down but holding above the $2,000 level that has been its base since April. Prices were on course for a loss of nearly 4 percent this week, extending 2018’s drop to 11 percent.
Sentiments turned bearish after Rio Tinto is close to restarting a sale process for some of its aluminium assets, including a plant in Iceland, which have been valued at around $350 million, two sources familiar with the matter said.
Also Norway's Norsk Hydro is focused on a return to full output at its Alunorte alumina refinery in Brazil and is not contemplating layoffs there, CEO Svein Richard Brandtzaeg told Reuters. Last night the dollar fell to low in two weeks on Thursday against a basket of currencies as traders pared greenback holdings on lower US Treasury yields and further losses on Wall Street.
A weaker-than-forecast rise in US consumer prices in September also reduced bets for a faster pace of interest rate increases by the Federal Reserve, further eroding the dollar's appeal. Most LME base metals rebounded into positive territory on Thursday.
--Aluminium trading range for the day is 148.3-152.5.
--Aluminium dropped after Norsk Hydro said it would resume half production at its giant Brazilian alumina plant, just days after declaring it would shut down completely.
--Chinese aluminium exports are expected to surge in coming months and next year after Beijing boosted tax rebates as part of a package to soften the impact of trade war.
--Norway's Norsk Hydro is focused on a return to full output at its Alunorte alumina refinery in Brazil and is not contemplating layoffs there.
Courtesy: Kedia Commodities