Aluminium settled up 0.48% at 124.95 before July industrial production and retail sales data from China. The ZEW think tank reported on Tuesday that the economic sentiment in the euro zone tumbled in August from 48.1to 23.7 and that in Germany also dropped sharply from 27.1 to 8.6, the lowest since December 2012. The markedly lower sentiment indicates that analysts and investors have lost confidence in these two economies, compounding concerns about whether the recovery in Germany and even in the euro zone will sustain in the third quarter. The German economics ministry warned on Tuesday that Germany's growth is likely to have slowed down in the second quarter since the geopolitical upheavals in Ukraine and the Middle East hampered the country's factory production and exports. Meanwhile, investors should keep a close eye on Germany's preliminary Q2 GDP growth due for release on Thursday. Three-month aluminum on the London Metal Exchange slipped to USD 2,029.5/mt after opening at USD 2,034.8/mt on Tuesday. The light metal, however, railed to USD 2,056/mt later in the day thanks to technical momentum and gains in other base metals, and ended at USD 2,050.5/mt. China will release data on urban fixed asset investment, value-added at large industrial enterprises and consumer goods retail sales today, which markets expect to be positive. Technically market is under fresh buying as market has witnessed gain in open interest by 3.6% to settled at 8721 while prices up 0.6 rupee, now Aluminium is getting support at 124.2 and below same could see a test of 123.4 level, And resistance is now likely to be seen at 125.6, a move above could see prices testing 126.2.

Trading Ideas:

Aluminium trading range for the day is 123.4-126.2.

Aluminium ended with gains before July industrial production and retail sales data from China.

The ZEW think tank reported that the economic sentiment in the euro zone tumbled in August from 48.1to 23.7 and that in Germany also dropped sharply to 8.6

Aluminium daily stocks at Shanghai exchange came down by 1225 tonnes.