MCX Zinc under fresh buying; Support seen at 193.2
Commodity Online | November 11 2019
UPDATED 09:50:29 IST

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Technically market is under fresh buying as market has witnessed gain in open interest by 3.5% to settled at 2898 while prices up 1.6 rupees.

Now Zinc is getting support at 193.2 and below same could see a test of 191.7 level, and resistance is now likely to be seen at 195.7, a move above could see prices testing 196.7.

Zinc on MCX settled up 0.83% at 194.7 as better-than-expected US employment data pointed to strong labour market conditions, which boosted the prospect for the global economy.

Inventories of zinc ingot across Shanghai-bonded areas fell this week for a fifth straight week, as more cargoes were delivered to Southeast Asia. Data showed that Shanghai bonded zinc stocks declined 1,000 mt from a week earlier to 78,400 mt as of November 8.

China’s factory gate prices fell 1.6% in October from a year earlier, the steepest fall since July 2016, data from the National Bureau of Statistics showed on Saturday, as manufacturing continues to struggle with weak demand. The producer price index (PPI), seen as a key barometer of corporate profitability, fell 1.2% year-on-year in September.

The consumer price index rose 3.8% in October from a year earlier, the fastest pace seen since January 2012, beating expectations of 3.3%. It rose 3% in September. Consumer sentiment in the U.S. has seen a slight improvement in the month of November, according to preliminary data released by the University of Michigan. The report said the index of consumer expectations rose to 85.9 in November from 84.2 in October, while the current economic conditions index fell to 110.9 from 113.2.

Trading Ideas:
--Zinc trading range for the day is 191.7-196.7.
--Zinc prices gained as better-than-expected US employment data pointed to strong labour market conditions, which boosted the prospect for the global economy.
--Inventories of zinc ingot across Shanghai-bonded areas fell this week for a fifth straight week, as more cargoes were delivered to Southeast Asia.
--China’s monthly production of refined zinc hit a fresh record high October.

Courtesy: Kedia Commodities

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