Aluminium on MCX settled up 0.12% at 125.25 as recovered to end with small gains on short positions after large inventory flows into exchange warehouses weighed on prices. Japan's gross domestic product growth was revised up in the fourth quarter as capital expenditure grew at the fastest pace in almost three years, welcome news for policymakers as they begin to discuss how to wind down years of massive stimulus. A flurry of data in coming weeks is expected to show China posted solid economic growth in February, even as the government trimmed its growth target for the year to focus on containing the risks from a rapid build-up in debt. Last week China pressed on with plans to cut output by 30 percent. Inventories of aluminum ingot in China’s five major trading markets climbed above 1 million mt as of now. The inventories in the five markets, namely Shanghai, Wuxi, Hangzhou, Gongyi, and Nanhai, grew for 9 weeks in a row, and the level of inventories in those regions have been far higher than the level seen the same period of last year. Premier Li Keqiang told the National People’s Congress in Beijing that the government will target slower economic growth this year. Gross Domestic Product rose by 6.7% in 2016, according to official figures. Meanwhile, investors await non-farm payrolls for February on Friday, viewed as a critical barometer of the U.S. economy and represents the final key economic data point ahead of the Federal Reserve’s policy meeting on March 14-15. Technically market is under short covering as market has witnessed drop in open interest by -9.43% to settled at 2508, now Aluminium is getting support at 124.5 and below same could see a test of 123.7 level, And resistance is now likely to be seen at 125.7, a move above could see prices testing 126.1.

Trading Ideas:

Aluminium trading range for the day is 123.7-126.1.

Aluminium recovered to end with small gains on short positions after large inventory flows into exchange warehouses weighed on prices.

Japan's gross domestic product growth was revised up in the fourth quarter as capital expenditure grew at the fastest pace in almost three years.

A flurry of data in coming weeks is expected to show China posted solid economic growth in February, even as the government trimmed its growth target for the year