Aluminium on MCX settled up 1.1% at 109.90 tracking LME Aluminium which rose 1.5 percent to settled at $1,660 a tonne on the back of a weaker dollar. The U.S currency fell after comments from a top Bank of Japan official reinforced views that the central bank was unable to take steps that would weaken the yen. Stockpiles of aluminum tracked by the LME fell 0.5 percent on Monday, the most since March. Citigroup called for “caution” on aluminum due to a pick-up in Chinese output. In the week ahead, market players will be turning their attention to fresh comments from Federal Reserve Chair Janet Yellen amid ongoing uncertainty over the timing of the next U.S. rate hike. Meanwhile, investors will be focusing on a pair of speeches from European Central Bank President Mario Draghi for fresh hints on whether the ECB will step up monetary stimulus in the coming months to boost inflation and prop up the economy. In addition, remarks by Bank of Japan Governor Haruhiko Kuroda will be eyed in wake of last week's decision by the BOJ to modify its policy framework. Another big event for markets could be the first U.S. presidential debate from Monday. Technically market is under short covering as market has witnessed drop in open interest by -0.92% to settled at 2799 while prices up 1.2 rupee, now Aluminium is getting support at 108.6 and below same could see a test of 107.1 level, And resistance is now likely to be seen at 110.9, a move above could see prices testing 111.7.

Trading Ideas:

Aluminium trading range for the day is 107.1-111.7.

Aluminium prices gained after LME aluminium rose 1.5 percent to $1,660 a tonne due to weakness in dollar.

Aluminum stocks in China’s five major markets stopped growing and began falling sharply instead as new policy disrupted shipments.

Aluminum daily stocks at Shanghai exchange came down by 2902 tonnes.