MCX Zinc under fresh selling; Support seen at 219.9
Commodity Online | April 24 2019
UPDATED 09:50:17 IST

MCX Mentha Oil likely to move in a range of 1270.1-1331.1

MCX Aluminium may trade between 140.5-145.7 levels

MCX Nickel under long liquidation; Support seen at 988.2

MCX Zinc under fresh selling; Support seen at 188.7

MCX Copper under fresh buying; Support seen at 449.8

Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 87.39% to settled at 2867 while prices down 2.45 rupees.

Now MCX Zinc is getting support at 219.9 and below same could see a test of 218 level, And resistance is now likely to be seen at 224.3, a move above could see prices testing 226.8.

Zinc on MCX settled down 1.09% at 221.8 after inventories in London Metal Exchange (LME) warehouses climbed and weak manufacturing data in Europe took the shine. Sentiment was also weighed down by worries that China will ease up on stimulative policies after some signs of stabilisation in its economy.

U.S. home sales fell more than expected in March as rising demand stoked by declining mortgage rates and slowing house price inflation continued to be frustrated by a lack of properties, especially in the market's lower-priced segment.

Manufacturers in China facing trade barriers are deploying an array of moves to try to keep foreign customers - giving discounts, tapping tax breaks, trimming workforces and, occasionally, shifting production overseas to skirt tariffs.

LME zinc stocks have halved this year and touched their lowest since at least 1998 earlier this month due to bottlenecks in processing capacity, making the metal the second best performer in 2019.

The premium of LME cash zinc over the three month contract was around $87 a tonne, down from a high of $120 touched a week ago. US wholesale inventories increased less than expected in February as sales rose for a second straight month.

The Commerce Department said that wholesale inventories climbed 0.2% to a record $668.9 billion in February. The US' goods and services deficit fell to $49.4 billion in February, its lowest since June 2018, the Commerce Department reported.

Trading Ideas:
--Zinc trading range for the day is 218-226.8.
--Zinc dropped after inventories in London Metal Exchange (LME) warehouses climbed and weak manufacturing data in Europe took the shine.
--Sentiment was also weighed down by worries that China will ease up on stimulative policies after some signs of stabilisation in its economy.
--The premium of LME cash zinc over the three month contract was around $87 a tonne, down from a high of $120 touched a week ago.

Courtesy: Kedia Commodities

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