Global aluminum supply will exceed demand by 5.6 percent this year, spurring lower prices, as idled smelters restart and new capacity comes on-stream. Aluminium yesterday traded with the positive node and settled 0.82% up at 116 on favorable economic data reduced market risk appetite, and so the US dollar index moved lower to close at 77.74, a drop of 0.52%. A weak US dollar and strong crude oil prices pushed up LME aluminum prices, LME aluminum market opened at USD 2,486/mt, and then moved higher, rising above USD 2,500/mt during the session, and finally closed at USD 2,519/mt, up USD 49/mt, or a gain of 1.98%. Tuesday is the last trading day before the Chinese New Year holiday, and low market trading sentiment will limit domestic aluminum price gains. For today's session market is looking to take support at 115.3, a break below could see a test of 114.4 and where as resistance is now likely to be seen at 117, a move above could see prices testing 117.9.

Trading Ideas:

Aluminium trading range is 114.4-117.9.

Global aluminum supply will exceed demand by 5.6 percent this year

Aluminium is taking support at 115 and resistance at 117.20 level.

Tuesday is the last trading day before the Chinese New Year holiday

BUY ALUMINIUM FEB ON DIP @ 114 SL 113 TGT 114.8-115.80-116.50.MCX

YESTERDAY LME STOCK FOR ALUMINIUM CAME UP BY 4625