Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (October 03, 2012)

Contributed by Angel Broking

The base metals pack traded on a positive note in yesterday's trading sessio n on the back of weakness in the DX along with mixed global market sentiments.

However, further upside movement in the prices was capped on account of rise in LME inventories.

In the Indian markets, appreciation in the Indian Rupee capped sharp gains in prices on the MCX on Monday.

Copper

Copper, the leader of the base metals complex gained 0.1 percent on the back of weakness in the DX and expectation that stimulus measures ann ounced in the month of September might revive the economies and augment demand for the red metal.

However, sharp gains were capped on the back of rise in the LME inventories and markets in China, the world's largest consumer of copper, closed for a week-long holiday, with volumes there remaining thin. The red metal touched a high of $8,379/tonne and closed at $8,321.25/tonne in yesterday's session.

MCX exchange remained closed on the occasion of Gandhi Jayanti on Tuesday. However on Monday October 01, 2012, MCX Copper prices closed at Rs.440.05/kg on Monday after touching a low of Rs.436.20/kg on the back of appreciation in the Indian rupee.

Outlook

In the intra-day, we expect base metals to trade on a bearish note on the back of mixed global market sentiments. However expectation of stimulus measures from the Chinese government may cushion sharp fall in the prices. Chinese market will remain close on the occasion of mid autumn and Chinese National Day Holidays from September 29 to October 7, 2012. This is expected to cap sharp volatility in the prices. In the Indian markets appreciation in the Indian rupee will pressurise prices on the MCX base metal.