Aluminium settled down -0.53% at 103.90 tracking LME aluminium prices which closed down 0.8 percent at $1,769 a tonne, the lowest since March 31, as computer-based funds sold after it broke below levels watched by chart trader after expansion in China's services industry slowed slightly in April, with employment growth slipping to a seven-month low, a survey showed. Last Friday, China’s April CPI growth on a YoY basis was reported at an 18-month low of 1.8%, and PPI fell for a 26th straight month by 2%, worse than the 1.9% decline expected. The data triggered speculation about easing monetary policy, but the PBOC remained cautious. The State Council issued opinions on further development of capital market, setting out the goals for further reforms, which boosted market confidence. Elsewhere in the US, March’s retail sales registered a 1.4% MoM rise, exceeding the 0.7% in February, while wholesale stocks also increased 1.1% in March, higher than February’s 0.5%. In the euro zone, Italy’s industrial output dropped unexpectedly by 0.5% in March, well below the 0.3% growth economists had expected. The country’s industrial output for the first quarter rose 0.1% on a quarterly basis, far below the 0.5% rise recorded in Q4 last year. Technically market is under fresh selling as market has witnessed gain in open interest by 15.87% to settled at 5708 while prices down -0.55 rupee, now Aluminium is getting support at 103.2 and below same could see a test of 102.6 level, And resistance is now likely to be seen at 104.8, a move above could see prices testing 105.8.

Trading Ideas:

Aluminium trading range for the day is 102.6-105.8.

Aluminium ended with losses as pressure seen after the greenback strengthened following positive US economic data

In euro zone, Italy’s industrial output dropped unexpectedly by 0.5% in March, well below the 0.3% growth had expected.

Aluminium weekly stocks at Shanghai exchange came up by 4399 tonnes