Technically Aluminium market is under short covering as market has witnessed drop in open interest by 27.69% to settled at 1844 while prices up 0.6 rupees.
Now MCX Aluminium is getting support at 136.9 and below same could see a test of 135.8 level, and resistance is now likely to be seen at 138.7, a move above could see prices testing 139.4.
Aluminium on MCX settled up 0.44% at 137.95 on short covering while sentiments will remain weak for base metals cruised mostly lower, as a spike in new cases from the coronavirus epidemic in South Korea refuelled investor anxiety.
South Korea reported 52 new cases of coronavirus on Friday, taking up the national total to 156, making it the worst-infected country outside of China. That renewed concern is spreading in South Korea, Singapore and other Asian economies. Mounting risk aversion boosted demand for safe-havens, with US gold futures hitting seven-year highs.
In economic news, existing home sales in the U.S. pulled back in January after jumping in December, according to a report released by the National Association of Realtors on Friday, with existing home sales continuing a fluctuating pattern of monthly increases and declines. NAR said existing home sales slumped by 1.3% to an annual rate of 5.46 million in January after surging up by 3.9% to a revised rate of 5.53 million in December.
Economists had expected existing home sales to tumble by 1.8%. Despite the monthly decrease, the report noted existing home sales in January were up by 9.6% compared to the same month a year ago. The IHS Markit US Composite PMI fell to 49.6 in February 2020 from 53.3 in the previous month, pointing to the first month of contraction in the private sector since October 2013.
--Aluminium trading range for the day is 136.2-139.
--Aluminium settled up on short covering while sentiments will remain weak for base metals.
--A spike in new cases from the coronavirus epidemic in South Korea refuelled investor anxiety.
--Transportation activity in coastal provinces has started to return to near normal levels in recent days.
Courtesy: Kedia Commodities