27 JUNE 2013Myiris.com
Kotak says downside may be capped in aluminum
Edited by : AL CIRCLE
1 min read
MCX Aluminum dropped on Tuesday amid range bound movements seen in international markets. MCX Aluminum June contract is trading at INR 103.55, down 0.19% on Tuesday. It opened at INR 103.45 and touched a low of INR 103.
LME Aluminium traded marginally lower on Tuesday after noting 1.2% decline Monday. Weighing on prices is record high stocks at LME warehouses coupled with supply glut. Stocks at LME rose by 6,375 tons yesterday hitting record high of 5.44 million tons after gaining by 2,14,125 tons last week.
Commenting on the outlook, the broking firm Kotak Commodity Services said, "The downside may however be capped amid higher cancel warrants and news of supply cuts and lower production. As per Aluminum International Aluminium Institute report, production averaged 126,700 metric tons a day in May, down from 127,000 tons a day in April. Also lending support is rising spot premium due lack of availability of metal in physical market. Support for Aluminum June contract is seen at INR102 while resistance of INR106."
LME Aluminium traded marginally lower on Tuesday after noting 1.2% decline Monday. Weighing on prices is record high stocks at LME warehouses coupled with supply glut. Stocks at LME rose by 6,375 tons yesterday hitting record high of 5.44 million tons after gaining by 2,14,125 tons last week.
Commenting on the outlook, the broking firm Kotak Commodity Services said, "The downside may however be capped amid higher cancel warrants and news of supply cuts and lower production. As per Aluminum International Aluminium Institute report, production averaged 126,700 metric tons a day in May, down from 127,000 tons a day in April. Also lending support is rising spot premium due lack of availability of metal in physical market. Support for Aluminum June contract is seen at INR102 while resistance of INR106."
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