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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (January 02, 2014)

January 2, 2014, Thursday, 07:12 GMT | 02:12 EST | 11:42 IST | 14:12 SGT
Contributed by Angel Broking


Base Metals

No movement was seen in international base metals as the LME markets were closed yesterday on the eve of New Year holiday.

MCX base metals purely took cues from Rupee depreciation and witnessed a positive movement yesterday.

Nickel was the biggest gainer with 0.8 percent while on the other hand Zinc was the biggest loser and the only metal which declined and slumped by 1.3 percent in yesterday’s trading session.


Copper

LME Copper did not show any movement yesterday on the back of New Year’s Eve holiday.

MCX Copper traded on a flat note and gained marginally on account of Rupee depreciation touching a high of Rs.472.2/kg and closed at Rs.468.6/kg on Wednesday.


Outlook

We expect base metals to trade higher today on the back of upbeat market sentiments coupled with weakness in the DX. Further, expectations of favorable manufacturing data from the Euro Zone will support an upside in the prices.

However, in the later part of the trade sharp upside will be capped or reversal can be seen due to estimates of decline in manufacturing data from, the US and UK. Also, mixed manufacturing data from China will act as a negative factor.

In the Indian markets, sharp positive movement in the prices will be restricted due to Rupee appreciation.