Aluminium settled down -0.33% at 121.70 but recovered from the day's low as risk appetite picked up after a round of solid factory activity figures in China and Europe, and on a delay to a possible U. S. military strike in Syria. LME aluminum which opened at USD 1,819/mt before climbing to USD 1,836/mt on positive China manufacturing PMI. However, LME aluminum dipped to USD 1,812/mt after the announcement of a series of manufacturing data in the euro zone, but did bounce back to USD 1,841/mt at the tail of the session. Finally, LME aluminum ended the day USD 22.5/mt or higher at USD 1,838/mt. European factories experienced robust growth in August and China bounced back on rising demand, lifting prospects for broad-based recovery on the back of the U. S. revival. While President Barack Obama's efforts to persuade the U. S. Congress to back his plan to attack Syria met with skepticism on Monday from lawmakers in his own Democratic Party who expressed concern the United States would be dragged into a new Middle East conflict. Traders have closely been looking out for U. S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Any improvement in the U. S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the near-term. Technically market is under fresh selling as market has witnessed gain in open interest by 10.73% to settled at 2777 while prices down -0.4 rupee, now Aluminium is getting support at 119.8 and below same could see a test of 117.8 level, And resistance is now likely to be seen at 122.8, a move above could see prices testing 123.8.

Trading Ideas:

Aluminium trading range for the day is 117.8-123.8.

Aluminium seen under pressure hurt by oversupply in the world's top producer and consumer of the metal.

Data shows the Chinese economy is on a track to regain strength and that should be reflected in higher demand for metals.

Aluminium daily stocks at Shanghai exchange came down by 2122 tonnes