Aluminium settled down -0.25% at 100.50 as concerns that China's equity rout could signal more deeply rooted problems in its economy, dragging on price prospects as a seasonal demand lull grinds on. While lastnight US Federal Reserve officials widely agreed last month the economy was nearing the point where interest rates should move higher, but worried that lagging inflation and a weak global economy posed too big a risk to commit to "liftoff". Also Chinese stock markets took a wild ride on Wednesday, tumbling and soaring in a session that made little sense other than to highlight that investors have almost no faith in a month-long government effort to stabilise them. While fears about China's economy and falling oil prices kept world equity indexes under pressure on Wednesday, while the dollar lost ground after minutes from the U. S. Federal Reserve's July meeting left uncertainty over the timing of an interest rate hike. Despite the recent batch of upbeat U. S. economic data, some traders believe the Fed could postpone raising interest rates next month as officials are likely to remain concerned over global growth and inflation pressures due to China's shock currency devaluation move and weak commodity prices. Technically market is under fresh selling as market has witnessed gain in open interest by 5.21% to settled at 6461 while prices down -0.25 rupee, now Aluminium is getting support at 100.2 and below same could see a test of 99.7 level, And resistance is now likely to be seen at 101.2, a move above could see prices testing 101.7.

Trading Ideas:

Aluminium trading range for the day is 99.7-101.7.

Aluminum dropped on fears that the demand for metal will decline as concerned the plunge in the stock market could spread.

Consumer prices in the U. S. saw a modest increase, with the consumer price index edging up
0.1 percent in July after climbing by 0.3 percent in June

Aluminium daily stocks at Shanghai exchange came down by 778 tonnes.