Exclusive Webinar :Gain complete knowledge about how you can invest in global markets during an insightful webinar on April 16 at 11 am. Register Now!

Aluminium futures jump 1.58% to Rs 177.05 per kg; outlook remains bullish

In the futures market, aluminium for March delivery touched an intraday high of Rs 177.05 and a low of Rs 176 per kg on the MCX.

Mumbai / March 26, 2021 / 09:38 PM IST

Aluminium prices climbed to Rs 177.05 per kg on March 26 as participants increased their long positions as seen by the open interest. The base metal extended gains after a gap-up open, tracking firm global trend.

The momentum indicator Relative Strength Index (RSI) is at 53.35, which indicates positive movement in prices.

The non-ferrous metal traded mixed to bullish in March so far, owing to hopes of revival of the global economy, even though COVID-19 worries continue to loom over the horizon in major developed countries.

However, weighing on the price is the higher stocks at LME and ShFE approved warehouses and signs of ample supplies in the physical market.

Sunand Subramaniam, Senior Research Associate at Choice Broking said, “We expect international aluminium futures to trade bullish as the COVID vaccination process has picked up the pace. Currently, the European Union is in the third phase of lockdown; however, the world is relatively much more prepared for this ongoing pandemic wave as compared to the first wave during the corresponding period last year.”

Close

“China aluminium production for February has been estimated at around 3.017 million tonnes, similar compared to 3.320 million tonnes reported in January. Overall, we expect a bullish trend in MCX Aluminium futures for the month ahead,” he added.

According to the International Aluminium Institute, global aluminium production for February 2021 has been reported to be around 5.203 million tonnes, lower compared to the previous month’s production of 5.727 million tonnes.

The US dollar was mildly lower at 92.80, down 0.02 percent in the evening session against the rival currencies.

MCX METLDEX jumped 123 points, or 0.90 percent, at 13,847 at 19:50. The index tracks the real-time performance of key base metals.

In the futures market, aluminium for March delivery touched an intraday high of Rs 177.05 and a low of Rs 176 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 160.15 and a high of Rs 178.70.

Aluminium delivery for March surged Rs 2.75, or 1.58 percent, to Rs 177.05 per kg at 19:52 hours with a business turnover of 34 lots. The same for April contract rose Rs 1.50, or 0.85 percent to Rs 178.75 per kg with a turnover of 1,765 lots.

The value of March and April’s contracts traded so far is Rs 1.05 crore and Rs 140.18 crore, respectively.

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Aluminium traded with marginal sideways and bullish momentum. We expect the prices to continue trade with a positive bias and test Rs 179-179.5 levels on the upside, whereas support is at Rs 177.2-176.7.”

MCX Aluminium is likely to trade positive bias having support at Rs 176.70-175 whereas resistance is at Rs 179.80-181, said Motilal Oswal.

At 1427 (GMT), the base metal price was up 1.10 percent, quoting at $2,282 per tonne in London.

For all commodities-related news, click here

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sandeep Sinha

stay updated

Get Daily News on your Browser
Sections