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Zinc market under long liquidation; Support seen at 193
Commodity Online | September 14 2017
UPDATED 11:41:57 IST

MCX Zinc may trade in range between 205.5-213.1

Copper market under fresh buying; Resistance seen at 449.4

Mentha Oil market under short covering; Support seen at 1685.7

NCDEX Turmeric likely to move in a range of 7024-7320

NCDEX Mustard Seed under long liquidation

Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 6.27% to settled at 7339 while prices down 1.9 rupees.

Now MCX Zinc is getting support at 193 and below same could see a test of 191.9 level, And resistance is now likely to be seen at 195.5, a move above could see prices testing 196.9.

Zinc on MCX settled down -0.97% at 194.10 on account on long liquidation as trader prefered to stay away as stocks of zinc in LME warehouses are up 25,250 tonnes at 267,050. A small premium for the cash over the three-month contract on Sept. 4 has over the last week turned into a $US5 a tonne discount.

Benchmark zinc was down 1.2 per cent at $3023. For the most part base metals prices are in correction/consolidation-at-lower-numbers mode, as markets where looking ahead to data from China on new loans, investment and industrial production due this week for clues on the strength of demand over coming months.

Although prices have corrected, there does not seem any rush for the exits so we do see this as the markets correcting having run ahead of the fundamentals, rather than sentiment turning less bullish. For now traders would give the market more time to adjust to recent price moves and wait to see if there are further large stock increases.

Overall, marekt would not be surprised to see prices pull back further, but would be on the lookout for buying opportunities.

Trading Ideas:
--Zinc trading range for the day is 191.9-196.9.
--Zinc dropped as prices come under pressure from expectations that high prices would mean mothballed capacity could be restarted.
--A small premium for the cash over the three-month contract on Sept. 4 has over the last week turned into a $5 a tonne discount.
--China’s new property construction starts fell 7 percent in July year-on-year, the first fall since last September.

Courtesy: Kedia Commodities

 

Commodity Arrivals Rate
Mustard Oil 30 8000.00
Coconut Oil 5 20700.00
Sugar NR 4450.00
Rubber 0.1 12200.00

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