Base Metals
Base metals on the LME traded higher last week owing to weakness in the DX. Also, air strikes in Yemen stoked concerns over the security of Middle East oil shipments, marking a third consecutive week of oil price increases, thereby supporting base metal prices.
Nickel was the biggest gainer with upside movement of 4.2 percent as six Chinese producers who were approved to supply nickel against the Shanghai Futures Exchange's new contract for the metal may not be able to provide sufficient output to fill July deliveries.
On the MCX, base metals traded on a positive note in line with international trends.
Copper
LME Copper jumped by 1.1 percent as weak Chinese manufacturing data has spurred expectations of further monetary stimulus measures from the biggest consumer. Also, optimism regarding the QE in the Euro Zone along with weakness in the DX acted as a positive factor.
However, sharp gains were capped owing to weak manufacturing data from the US and Euro Zone, thereby pointing towards weak demand from major consumers.
MCX copper prices surged by 2.2 percent and closed at Rs.385.1/kg on Friday owing to Rupee depreciation.
Outlook
We expect LME Copper prices to trade higher as investors will focus on the conclusion of the Federal Reserve's two-day monetary policy meeting on Wednesday, for cues on US interest rate hike.
However, concerns regarding Greece default have heightened following warning by Euro group last week will restrict sharp upside.
On the MCX, Copper prices are expected to trade higher taking cues from international markets.
Contributed by Angel Broking