Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (February 27, 2013)

Contributed by Angel Broking

The base metals pack traded on a positive note on the back of favourable consumer confidence and new home sales data from the US.

However, sharp upside in the prices was capped on the back of rise in LME inventories except Zinc coupled with strength in the DX.

In the Indian markets, depreciation in the Rupee also supported an upside in the prices.

Copper

Copper the leader of the base metal pack rose by 0.8 percent in yesterday's trading session on the back of favourable economic data from US. Apart from that, positive statement from US Fed Chairman Be n Bernanke also supported an upside in the prices.

However, sharp upside in the prices was capped as a result of rise in the LME Copper inventories by 1.8 percent which stood at 438,375 tonnes coupled with strength in the DX. The red metal touched an intra-day high of $7,906.50/tonne and closed at $7,892.30/tonne in the yesterday's trading session.

On the domestic front, prices gained by 0.9 percent as a result of depreciation in the Indian Rupee and closed at Rs.426.40/kg after touching an intra-day high of Rs.427.20/kg on Tuesday.

Outlook

In the intra-day, we expect base metals prices to trade higher on the back of positive economic data from the US coupled with weakness in the DX. Further, expectations of increase in the US pending home sales data and core durable goods orders will also act as a positive factor for the prices. Appreciation in the Indian Rupee will cap sharp gains in the prices on the MCX.