Aluminium settled up 1.73% at 120.45 trackling weakness in Indian rupee plunged to a record low on Wednesday on heavy dollar demand from importers. Also support seen after the news that Russia's Rusal, the world's largest aluminium producer by output, may delay the start of production at one of its biggest projects, seeking to ease a global glut of the metal. While pressure seen as Existing home sales in the US were 5.39 million units on an annualized basis in July, the highest since November 2009. This fuelled worries that the US Federal Reserve will wind down QE3 soon. And Investors pulled out of the market, sending LME aluminum down to USD 1,882/mt. LME aluminum, however, did recover some of its earlier losses at the tail of the session thanks to short-covering, and finally closed at USD 1,902/mt, down USD 14/mt or 0.73%. While India's National Aluminium Co Ltd plans to raise its alumina exports by 40 percent to 1.4 million tonnes this fiscal year, its production chief said, helping the country increase its dollar inflow amid a plunge in the rupee. Asia's third-largest economy is looking to boost exports and lower imports of commodities such as gold to arrest a steep fall in the rupee, which sank to its lowest on Tuesday. The fall in the rupee has helped National Aluminium, better known as NALCO, raise its exports, said S. S. Mohapatra, the production director of the state-owned company. The overseas shipments of NALCO, India's largest exporter of alumina, could raise about $400 million based on current prices. Technically market is getting support at 118.3 and below same could see a test of 116.2 level, And resistance is now likely to be seen at 121.7, a move above could see prices testing 123.

Trading Ideas:

Aluminium trading range for the day is 116.2-123.

Aluminium rose tracking firmness in other base metals as support seen due to weakness in rupee, dropping to life time low.

Existing home sales in the US in July were well above forecasts and jumped to the highest since November 2009

Germany, France and the euro zone will announce manufacturing and service PMI for August today.