Aluminium yesterday traded with the negative node and settled -0.18% down at 111.5 as investor worries caused by debt crisis in Greece and Italy overnight were relieved by surging share prices of France’s biggest banks BNP Paribas and Societe Generale, with the euro rebounding to help European and US stock prices close higher. The US dollar index fell 0.27% to 77.059 as a result. Though New York crude price hit an intraday high of USD 90/bbl, LME aluminum only saw a slight rebound to USD 2,390/mt despite of its energy attributes. Transactions during the day decreased significantly by 3,675 lots from previous trading day due to low investor confidence. After hitting an intraday low of USD 2,363/mt on short selling, the metal finally closed at USD 2,370/mt, down USD 5/mt or 0.21%. Market transactions will remain quiet. European debt crisis is still market focus. Positive statement from the European Central Bank and Germany officials eased market concern to certain extent. In addition, China also reiterated its stance to continue supporting EU countries to cope with European debt crisis, and will continue to invest Europe.For today's session market is looking to take support at 110.9, a break below could see a test of 110.3 and where as resistance is now likely to be seen at 112.4, a move above could see prices testing 113.2.

Trading Ideas:

Aluminium trading range is 110.3-113.2.

Aluminium dipped as investor worries caused by debt crisis in Greece and Italy.

Exchange-traded products backed by physical aluminum are unviable because of relatively high storage and management costs.

LME aluminum only saw a slight rebound to USD 2,390/mt despite of its energy attributes.