Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (November 02, 2012)

Contributed by Angel Broking

The base metals pack traded on a positive note in yesterday's trading session on the back of rise in risk appetite in the global market sentiments coupled with decline in LME inventories.

However, strength in the DX prevented further upside movement in the base metals prices.

In the Indian markets, appreciation in the Rupee capped sharp upside in the prices.

Copper

Copper, the leader of the base metals complex gained 1.1 percent on the back of rise in the risk appetite amongst market participants after observing positive manufacturing data from the Chinese and the U.S economy. However, strength in the DX capped sharp gains in the copper. Demand from the industrial buyers was also seen after fall in the last few days.

Decline in LME Copper inventories by 0.1 percent also acted as a supportive factor for the upside pressure on the Copper prices on Thursday. LME Copper stocks stood at 2,39,600 tonnes. The red metal closed at $7,724/tonne on Thursday.

On the domestic front, prices gained 0.9 percent and closed at Rs.423.30/kg after touching an intra-day high of Rs.424.80 /kg. However, sharp upside in the prices was capped due to appreciation in the Indian rupee.

Outlook

From the intraday perspective, base metal prices are expected to trade on a positive note due to favourable manufacturing data from the US economy. However, strength in the DX is expected to cap sharp gains in the base metals pack. Appreciation in the Rupee will cap sharp gains in the base metal prices on MCX.