IRIS reported that Broking firm Kotak Commodity Services gave following outlook on base metals segment:
Copper - MCX Copper may note some decline tracking international exchange however the downside remains capped. LME Copper trades slightly lower tracking weakness in Euro. Also putting pressure on prices is deepening worries over debt crisis in Euro Zone and concerns over weakening demand amid bleak global economic growth outlook. The downside may however be capped amid slight abatement of worries after European monetary official suggested the regions bailout fund could get more firepower. Also lending support is hopes of further monetary easing by China and US to spur economic growth in their region. Prices may further seek support from falling stocks at LME and expectation of tightness in physical markets. Stocks at LME fell by 25 tonnes while cancel warrants stood at 20.53%. Prices will further track economic releases and its impact on movement in global equity and currency markets. As for today focus will be on Euro Nation Bond auction, German Gfk Business climate and US Durable Goods, Initial Jobless Claims and Pending Home Sales. Support for August copper is seen at INR 415 while resistance is seen at INR 421.
Aluminum - MCX Aluminum may note some gains tracking international markets however the upside remains capped. Supporting prices is falling stocks at LME warehouses however supply glut may cap the upside. Stocks at LME fell by 4,725 tonnes after gaining by 28950 tonnes last week while those at SHFE rose by 8,372 tonnes. Support for Aluminum July contract is seen at INR 102.5 while resistance of INR 105.5.
Zinc - MCX Zinc may note some decline tracking copper prices, the downside however remains capped. Also Weighing on prices is jump in stocks at LME and higher surplus in physical markets. Stocks at LME rose by 1550 tonnes after hitting 17 year high of 1,015,075 last week while cancel warrants ratio continued eased to 16.02%. Meanwhile, according to a monthly bulletin from Lisbon based International Lead and Zinc Study Group the global zinc market was in surplus by 149,000 tonnes in the first five months of the year. Support for MCX Zinc July contract is seen at INR 100 while resistance is seen at INR 103.
Nickel - MCX Nickel may note some decline tracking international exchange however the downside remains capped. Weighing on prices is weak global demand and easing worries over supply disruptions may cap the upside. Further prices may come under pressure amid rising stockpiles at LME and rising surplus in physical markets. Stocks rose by 1,182 tonnes after gaining by 1848 tonnes last week. Also according to the latest monthly bulletin from Lisbon based International Nickel Study Group the global nickel market was in supply surplus by 27,000 tonnes in the first 5 months of 2012. The downside may however be capped amid firmness in equities. Support for MCX Nickel July contract is seen at INR 875 while resistance is seen at INR 905.
Lead - MCX Lead may note some gains tracking international exchange, however the upside remains capped. Prices may seek support from falling stockpiles at LME and robust demand from China however higher surplus in physical markets and easing cancel warrants at LME may cap the upside. Stocks at LME fell by 2,150 tonnes after declining by 6,250 tonnes last week. Meanwhile, according to a monthly bulletin from Lisbon-based International Lead and Zinc Study Group the global lead market was in surplus by 32,000 tonnes in the first 5 months of the year. Support for MCX Lead July contract is seen at INR 103 while resistance is seen at INR 106.
Source - IRIS.com
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