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Aluminium looks strong despite the weakened rupee
Edited by : AL CIRCLE
2 min read
The markets witnessed higher turnover last week as traders displayed increased risk appetite, especially in hard assets. The week-on-week market-wide turnover on the MCX rose 16% while the market-wide open interest fell 7%.
The MCX turnover gainers during the week were aluminium, copper, crude oil, crude palm oil, gold, lead, mentha oil, natural gas, nickel, silver, sugar and zinc. The open interest gainers were aluminium, cotton, crude oil, gold, mentha oil, natural gas and potato. The US non-strategic petroleum reserves were higher by 2.1 million barrels, at the 381.6 million barrel mark.
Safe-haven buying, coupled with a weakening rupee, kept commodity prices buoyed in the domestic markets. Should the rupee witness some RBI support, commodity prices may witness near-term volatility.
Aluminium has rallied strongly to end the week at its highest after week ended March 17, 2012, which makes a bullish case for the near term. The Rs112 hurdle is likely to be the last impediment for the bulls to overcome before another upthrust can be expected. In case of declines, the bulls must defend the Rs108 level if the uptrend is to sustain. Hold longs for now. Market internals indicate a 14% increase in turnover and a 39% increase in open interest.
Safe-haven buying, coupled with a weakening rupee, kept commodity prices buoyed in the domestic markets. Should the rupee witness some RBI support, commodity prices may witness near-term volatility.
Aluminium has rallied strongly to end the week at its highest after week ended March 17, 2012, which makes a bullish case for the near term. The Rs112 hurdle is likely to be the last impediment for the bulls to overcome before another upthrust can be expected. In case of declines, the bulls must defend the Rs108 level if the uptrend is to sustain. Hold longs for now. Market internals indicate a 14% increase in turnover and a 39% increase in open interest.
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