MCX Zinc under long liquidation; Resistance seen at 187.5
Commodity Online | November 22 2019
UPDATED 09:50:29 IST

MCX Mentha Oil under fresh buying; Resistance seen at 1321.4

NCDEX Chana under fresh buying; Resistance seen at 4423

MCX Cotton under fresh selling; Support seen at 19000

NCDEX Jeera under fresh buying; Support seen at 15790

MCX Aluminium may trade between 131.7-133.1 levels

Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 10.78% to settled at 2028 while prices down 0.9 rupees.

Now MCX Zinc is getting support at 185.5 and below same could see a test of 184.5 levels, and resistance is now likely to be seen at 187.5, a move above could see prices testing 188.5. 

Zinc on MCX settled down 0.48% at 186.55 as the US dollar edged higher and amid heightened political tensions between the world’s two largest economies. The so-called “phase one” trade deal between the US and China may not be completed this year, as Beijing insists on the removal of tariffs.

Uncertainty around trade also grew after the Senate passed a bill supporting Hong Kong protesters. China needs to make better use of its various policy tools to boost the economy, Premier Li Keqiang said.

All possible means will be used to lower real interest rates, and monetary policy needs to be better suited to boosting economic activity, Li told reporters after a roundtable with World Bank and IMF chiefs.China’s economy has maintained a stable performance this year and the government is confident that it will achieve the main social and economic targets for 2019, said Li.

China’s economic growth has slowed to a near 30-year low, pressured by sluggish domestic and global demand and U.S. trade tariffs.China lowered its lending benchmark rate, as widely expected, after it cut the cost it charges on short-term open-market operations for the first time in more than four years earlier in the week. Federal Reserve officials generally saw little need for further rate cuts unless economic conditions change significantly, according to minutes.

Trading Ideas:
--Zinc trading range for the day is 184.5-188.5.
--Zinc prices remained pressure as the US dollar edged higher and amid heightened political tensions between the world’s two largest economies.
--The so-called “phase one” trade deal between the US and China may not be completed this year, as Beijing insists on the removal of tariffs.
--China needs to make better use of its various policy tools to boost the economy, Premier Li Keqiang said.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 1.5 7800.00
Coconut Oil 2.5 16800.00
Arecanut 1 21500.00
Sugar 0.4 4000.00

More