Aluminium settled up 4.25% at 123.95 as rupee weakness and uncertainty that US may increase military intervention in Syria, with positive effect from upbeat US economic data. While prices got support as Iran has hiked purchases of alumina from China and India in the past two months as the country scrambles to shore up supply after the U. S. tightened sanctions on raw and semi-processed materials at the start of July. Western measures targeting Iran's disputed nuclear programme have hit many sectors of its economy including industries producing steel and other metals, where it is heavily dependent on imports. Tehran says its atomic work is peaceful. Tightened U. S. sanctions came into effect on July 1 that extended a ban on aluminium metal to cover raw and semi-finished metals as well. China and India have won waivers from any U. S. sanctions on their financial system related to trade with Iran because they have cut imports of Iranian oil. China's alumina exports to Iran jumped to record levels in June and July, customs data shows, while India's national aluminium producer has awarded an alumina tender to Iran's national smelter in the past two months, company sources say. While China, the world's top producer and consumer of alumina, exported 15,072 tonnes to Iran in July and 15,078 tonnes in June, customs data showed. That compared with sales to Iran of 553 tonnes for the whole of last year, out of China's total 2012 alumina exports of 43,293 tonnes, customs data shows. Now Aluminium is getting support at 120.3 and below same could see a test of 116.6 level, And resistance is now likely to be seen at 126.7, a move above could see prices testing 129.4.

Trading Ideas:

Aluminium trading range for the day is 116.6-129.4.

Aluminium ended with gains tracking firmness in other commodities due to weak rupee and also drop in LME stocks supported prices.

Germany's business climate index in August was 107.5, the highest since April 2012.

Aluminium daily stocks at Shanghai exchange came down by 3582 tonnes