Comments
The crucial long-term support in the ₹138-₹139 per kg region is holding well for the Aluminium futures contract traded on the Multi Commodity Exchange. The contract has been stuck in a narrow range between ₹138 and ₹143 over the last one week. Within this range, it is currently poised at the upper end of ₹143/kg range.
The contract is lacking fresh sellers to drag it decisively below ₹138. Key resistance is at current levels in the ₹143-₹144 zone. If it manages to decisively breach ₹144, a corrective rally to ₹147 or ₹148 is possible on the back of short covering. Further rally beyond ₹148 looks unlikely at the moment.
On the other hand, if it fails to break above ₹144 and reverses lower, it can dip to ₹139 and ₹138 again. In such a scenario, a range-bound move in the band between ₹138 and ₹144 is possible.
As long as the contract trades below ₹144, the possibility of it declining below ₹138 is high. A strong break below ₹138 will drag the contract lower to ₹132 or ₹130.
Short-term traders with a high-risk appetite can go short at ₹144 and ₹146. Stop-loss can be placed at ₹149 for the target of ₹134. Revise the stop-loss lower to ₹140 as soon as the contract moves down to ₹138.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.