Tuesday, April 3, 2012

MCX ALUMINIUM TIPS (APR 03)


SHORT SELLING PULLED DOWN ALUMINIUM TO 6-WEEKS LOW AT MCX

Date: 03/04/2012


Aluminium plunged to 6-weeks low at MCX extending the weekly losses and stood near to the major support level of Rs 107.7 per kg. Huge short selling with 36% rise in its open interest to 4833 lots hammered the metal at domestic bourses MCX. Aluminium shed by 0.5% or Rs 0.55 to Rs 107.8 per kg with its high at Rs 108.75 per kg and low at Rs 107.7 per kg on Monday, 2nd April. Aluminium April contract stood below 9-day EMA with its RSI in oversold region at 18.8.
At LME, Aluminium shed for the third consecutive day by 0.9% at $2121 per tonne on Monday. The huge rise in aluminium inventories that stood at 5076,925 tonnes, up 13575 tonnes led the metal to slump to its further lows. But, the recovery signals from China and US in its manufacturing activity pared huge losses in the metal.
Aluminium at MCX is likely to find support at Rs 107.3 per kg to Rs 106.9 per kg and resistance at Rs 108.7 per kg and Rs 109.2 per kg on Tuesday, 3rd April.

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