Aluminium settled 1.2% up at 104.40 as sentiments boosted by encouraging US housing data, but gains were muted by a stronger dollar and ahead of the release of China's economic growth data for the third quarter. The US Department of Commerce released overnight that the US housing starts surged 15% in September to an annual rate of 872,000, the highest in four years. The figure was far better than estimates, raising expectations for robust demand and driving the US dollar index below 79. Concerns over the European debt crisis and slowing Chinese economy will curb gains brought by positive housing starts in the US. China's economy likely slowed for a 7th straight quarter in July-September, missing the government's target for the first time since the depths of the global financial crisis, and data on Thursday could signal still worse to come. Meanwhile Germany urged its European partners to agree to cede control over their budgets to a central authority in Brussels, setting up a clash with France and other single currency members at a summit of the bloc's leaders this week. The IMF called on the eve of a EU summit for both Spain and Italy to seek euro zone assistance to draw a line under the bloc's debt crisis, but Rome has rebuffed the idea and Madrid seems likely to apply alone. For today's session market is looking to take support at 103.1, a break below could see a test of 101.8 and whereas resistance is now likely to be seen at 105.2, a move above could see prices testing 106.

ALUMINIUM

Aluminium trading range for the day is 101.8-106.

Aluminium rallied 1.2% up as sentiments boosted by encouraging US housing data.

Concerns over the European debt crisis and slowing Chinese economy will curb gains.

Aluminium daily stocks at Shanghai exchange came down by 375 tonnes

Warehouse stock for Aluminium at LME was at 5058250mt that is down by  -7550mt.

SELL ALUMINIUM OCT @ 103.50 SL 104.20 TGT 102.80-102.MCX