Aluminium settled down -1.2% at 123.45 as the decline was the result of downbeat Chinese economic data and US retail sales hitting a 6-month low in July. After a series of economic reports from China, the euro zone, and the US came in negative, the price of the metal sank. In China, value added at large industrials grew at an unexpectedly slower rate of 9.0% YoY in July. Urban fixed asset investment growth in the first seven months fell to 17%, while increase in retail sales of consumer goods also dropped to 12.2%, missing expectations. National real estate development investment rose in the first seven months at a nominal rate of 13.7% to RMB 5.04 trillion, with the growth down 0.4 percentage point from the first six months. US retail sales stalled in July since automobile demand from the country's consumers waned and slow wage increases depressed buying. Prices also seen pressure after industrial production in Japan fell more-than-expected last month data showed on Tuesday signaling weak sentiment in the region which reduced the demand outlook for the industrial metal. The Ministry of Economy Trade and Industry said that industrial production fell to a seasonally adjusted -3.4 per cent from -3.3 per cent in the preceding month. Market players continued to monitor geopolitical developments from Ukraine and the Middle East. Technically market is under long liquidation as market has witnessed drop in open interest by -13.21% to settled at 7569 while prices down -1.5 rupee, now Aluminium is getting support at 122.9 and below same could see a test of 122.4 level, And resistance is now likely to be seen at 124.3, a move above could see prices testing 125.2.

Trading Ideas:

Aluminium trading range for the day is 122.4-125.2.

Aluminium dropped as the decline was the result of downbeat Chinese economic data and US retail sales hitting a 6-month low in July.

After a series of economic reports from China, the euro zone, and the US came in negative, the price of the metal sank.

Aluminium daily stocks at Shanghai exchange came up by 953 tonnes.