Aluminium yesterday traded with the negative node and settled -1.9% down at 112.90 as weak manufacturing flash PMI of China and the euro zone for September raised worries over slack global demand for base metals. In response, aluminum tumbled to a low of 112.80, aluminum was deprived of upward momentum due to short selling following the worse than expected US weekly jobless claims. Market sentiment remained on the back foot after data showed that Euro zone manufacturing activity improved modestly in September, but remained in contraction territory for the 13th consecutive month, while service sector activity slumped to the lowest level since July 2009. The euro zone’s manufacturing purchasing managers’ index rose to a seasonally adjusted 46.0 in September from a final reading of 45.1 in August, compared to expectations for a reading of 44.5. The services PMI fell to 46.0 from 47.2 in August. In yesterday's trading session aluminium has touched the low of 112.8 after opening at 114.45, and finally settled at 112.9. For today's session market is looking to take support at 112.3, a break below could see a test of 111.7 and where as resistance is now likely to be seen at 114, a move above could see prices testing 115.

Trading Ideas:

Aluminium trading range for the day is 111.73-115.03.

Aluminium ended lower as weak manufacturing flash PMI of China and the euro zone for September raised worries over demand

LME aluminum was deprived of upward momentum due to short selling following the worse-than-expected US weekly jobless claims

HSBC reported hat HSBC China PMI remained below the 50 mark, while Japanese manufacturers' sentiment dropped in September