Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 4.99% to settled at 5474 while prices up 0.8 rupees.
Now MCX Aluminium is getting support at 141.1 and below same could see a test of 140.2 level, and resistance is now likely to be seen at 142.5, a move above could see prices testing 143.
Aluminium on MCX settled up 0.57% at 141.9 as investor sentiment improved on the back of easing US-Iran tensions and ahead of the signing of the phase one US-China trade deal.
China produced 35.44 million mt of primary aluminium in 2019, down 1.8% from 2018, as loss-making smelters trimmed their output in the first half of the year while production in the second half was affected by a slew of unexpected accidents.
In the same year, primary aluminium consumption in China shrank as well, falling 1.6% year on year to 36.07 million mt, as major consumers lost momentum, with less real estate floor space completed, fewer automobiles manufactured and less investment in grid projects.For 2020, new or restarted smelting projects are expected to help China’s primary aluminium production gather pace, while an anticipated recovery in cars, durable goods and property will likely drive aluminium consumption back to growth.
Strong US employment data also helped lift sentiment.Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 214,000 for the week ended January 4, the Labor Department said. ADP and Moody’s Analytics said US private payrolls increased by 202,000 in December, topping a Dow Jones estimate