Mcx Base Metal Technical Report 28 November

Base Metals

LME base metals traded on a negative note yesterday taking cues from decline in core durable goods data from the US along with strength in the DX.

However, upbeat global market sentiments coupled with decline in LME inventories except Nickel restricted sharp fall in prices of the base metals.

In the Indian markets, base metals traded lower owing to Rupee appreciation.

Copper

LME Copper declined by 0.8 percent yesterday on the back of unfavorable core durable goods data from the US coupled with strength in the DX. However, positive economic data from Germany along with upbeat global market sentiments cushioned sharp fall.

Also, decline in inventories by 0.7 percent to 431,900 tonnes restricted further fall in prices. The red metal touched an intra-day low of $6991.25/tonne and closed at $7012.5/tonne on Wednesday.

MCX Copper prices fell by 0.1 percent yesterday touching an intra-day low of Rs.440.75/kg and closed at Rs.442.7/kg.

Outlook

From the intra-day perspective, we expect base metals prices to trade on a negative note on the back of decline in the US core durable goods orders data in yesterday’s trade. Further, expectations of mixed economic data from Euro Zone in today’s trade will add downside pressure on prices. However, upbeat market sentiments coupled with weakness in the DX will cushion sharp downside movement in prices. Additionally, less volatility will be observed as US markets closed today on eve of Thanksgiving Day.

In the Indian markets, Rupee appreciation will continue with downside pressure in prices.

Technical Chart – LME Copper

Technical Outlook valid for November 28, 2013 Unit Support Resistance MCX Copper Nov’13 Rs /kg 440/437 445/448 MCX Zinc Nov’13 Rs /kg 114.50/113.50 116.50/117.50 MCX Lead Nov’13 Rs /kg 127.50/126.50 129.50/130.50 MCX Aluminum Nov’13 Rs /kg 106.00/105.00 108.00/109.00 MCX Nickel Nov’13 Rs /kg 823.00/817.00 835.00/842.00

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