IRIS reported that Broking firm Kotak Commodity Services gave following outlook on base metals segment:
Copper - MCX Copper may note some decline tracking international market however the downside remains capped. LME Copper is trading lower as investor’s book profit after yesterday’s rally. Markets are cautious ahead of ECB interest rate meet later in the day. Also putting pressure on the prices is fears of weakening demand from top consumer China and choppiness in equities. The gains may however be capped amid hopes of monetary easing by central banks of US, Europe and China to spur growth in their region. Also lending support is weakness in US Dollar and falling stocks at exchange warehouses.
Stocks at LME fell by 3750 tonnes after declining by 5,650 tonnes last week. Prices may further track economic data releases and its impact on movement in global equity and currency markets. As for today, apart from ECB meet focus will be on Bank of England interest rate announcement, Euro Zone GDP, US ADP Non Farm Payrolls initial jobless claims and ISM Manufacturing PMI. Support for November copper is seen at Rs.428 while resistance is seen at INR 442.
Aluminum - MCX Aluminum may note some decline tracking international exchange however the downside remains capped. Lending support to the prices is recent decline in stocks at LME warehouses coupled with higher energy prices. Stocks at LME fell by 3,850 tonnes after declining by 33,975 tonnes last week. Support for Aluminum September contract is seen at INR 107 while resistance of INR 111.
Zinc - MCX Zinc may note some decline tracking international market, however the downside remains capped. Prices may come under pressure tracking higher surplus in physical markets however decline in stocks at LME warehouses may cap the downside. According to a monthly bulletin from Lisbon-based International Lead and Zinc Study Group the global zinc market was in surplus by 152,000 tons in the first 6 months of the year. Meanwhile, stocks at LME fell by 1500 tonnes after declining by 14,275 tonnes last week. Support for MCX Zinc September contract is seen at INR 103 while resistance is seen at INR 107.
Nickel - MCX Nickel may note some decline tracking international exchange however the downside remains capped. Weighing on prices is weak global demand and higher stocks at LME warehouses. Stocks rose by 384 tonnes yesterday after gaining by 4,386 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 of 34,800 tonnes in the first 6 months of 2012.The downside may however be capped tracking higher cancel warrants ratio at LME warehouses and weakness in US Dollar. Support for MCX Nickel September contract is seen at INR 880 while resistance is seen at INR 925.
Lead - MCX Lead may note some decline tracking marginal decline in international market, however the downside remains capped. Prices may come under pressure tracking higher surplus in physical market however falling stocks at exchange warehouses coupled with robust demand from China may cap the downside. Stocks at LME fell by 1,250 tonnes today after declining by 4,900 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 48,000 tonnes in the first 6 months of the year. Support for MCX Lead September contract is seen at INR 111 while Resistance is seen at INR 115.
Source - IRIS.com
(www.steelguru.com)
