Aluminium settled up 0.67% at 113.45 tracking firmness in other base metals counters and drop in LME stocks also supported. China's primary aluminium production rose 1.3 percent from the previous month, hitting a record 1.863 million tonnes in August 2013. New capacity in northwestern regions such as Xinjiang had helped push up aluminium production. China produced 14.349 million tonnes of primary aluminium in the first eight months of the year, up 8.2 percent from the same months in 2012. The number of US initial jobless claims last week decreased to 292,000, much lower than the forecast of 330,000, and the lowest since April 2006, triggering market fears of an and of QE3. The US dollar index jumped. Bank of England President Carney said they will consider using additional stimulus measures if economy falls again, boosting the market. Euro zone industry output in July was down 1.5%, lower than the 0.6% growth revised in June, with annualized data falling by 2.1%, also lower than the 0.4% decline revised in June. Greece's June unemployment rate rose to 27.9%, hitting a new high. It was reported Slovenia will likely apply for bailout to European Stability Mechanism. Technically market is under short covering as market has witnessed drop in open interest by -4.52% to settled at 2663 while prices up 0.75 rupee, now Aluminium is getting support at 112.4 and below same could see a test of 111.4 level, And resistance is now likely to be seen at 114, a move above could see prices testing 114.6.

Trading Ideas:

Aluminium trading range for the day is 111.4-114.6.

Aluminium ended with gains tracking firmness in other base metals counters and drop in LME stocks also supported

China's primary aluminium production rose 1.3 percent from the previous month, hitting a record 1.863 million tonnes in August 2013

Aluminium daily stocks at Shanghai exchange came down by 801 tonnes