Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 2.96% to settled at 3062 while prices up 1.8 rupees.
Now MCX Aluminium is getting support at 142.2 and below same could see a test of 140.8 level, And resistance is now likely to be seen at 144.4, a move above could see prices testing 145.2.
Aluminium on MCX settled up 1.27% at 143.55 on fresh buying as support seen from LME aluminium which finished the day up 1.4 percent at $2,249 a tonne after the news taht Zhengzhou, capital of key aluminium-smelting province Henan, raised its air pollution alert to red, the highest level, from Friday, bringing tighter curbs on output of industrial products including metals.
Meanwhile support also seen and sentiments also improved after the International Monetary Fund on Monday revised up its forecast for world economic growth in 2018 and 2019 saying that sweeping U.S. tax cuts were expected to boost investment in the world’s largest economy and help its main trading partners.
In the week ahead, investors will be focused on the outcome of monetary policy meetings by the ECB and the Bank of Japan.
Market watchers will be looking ahead to data on fourth quarter growth from both the U.S. and the UK. The World Economic Forum in Davos and talks on the North American Free Trade Agreement will also be closely watched for developments.
Trading Ideas:
--Aluminium trading range for the day is 140.8-145.2.
--Aluminium gains as support continues buoyed by the first acceleration in China's GDP growth in seven years and by a pollution alert in a major industrial province.
--China’s central Henan province churned out more aluminium than neighbouring Shandong for the first time in years, becoming the nation’s top-producing region.
--Aluminium producer Alcoa (NYSE:AA) Corp reported a bigger quarterly loss, hurt by the closure and divestiture of some smelting assets.