Commodity Radar: Trends positive for aluminium trade. Time to accumulate for up to 6% near term upside
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Aluminium futures traded in the red on Friday amid market uncertainties after the Trump administration unveiled a range of new tariffs set to take effect in one week.August aluminium futures were trading at Rs 249.30 around 4 pm, down Rs 1.15 or 0.46%, tracking weakness in international prices. Three-month contracts on the LME hovered around $2,565, down 1.4%.Commenting on current trends, Ajit Mishra, Senior Vice President - Research at Religare Broking, said aluminium prices have found support from an improving demand outlook in China and tightening global supply.'Market sentiment has strengthened as traders tracked progress in US-China trade talks, which could boost industrial metal demand. Confidence also rose after Beijing pledged to stabilize industrial growth, unveiling a CNY 1.2 trillion hydroelectric dam project to sustain infrastructure-led economic momentum,' he added. Aluminium has staged a strong recovery from its March lows of Rs 228 and is now trading near Rs 250. Prices are comfortably above the 50-day and 200-day moving averages, confirming bullish strength.A golden crossover (50 DMA crossing above 200 DMA) is also in place, indicating a medium-term trend reversal. However, with prices nearing key resistance at the Rs 255–257 zone (previous breakdown area), some consolidation or mild profit-booking cannot be ruled out.Traders may look to accumulate on dips toward Rs 248–250, with a stop loss below Rs 241. Upside targets are placed at Rs 258 and Rs 264.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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