Golden Investment Research (P) Limited
Date 13.01.2012
MCX Copper may note some decline tracking international exchanges, however the downside remains capped. LME copper is trading lower in early trades today after gaining for three consecutive sessions. Weighing on prices is reduced demand in China ahead of weeklong Lunar day holidays. Also putting pressure on prices is weaker data from US and choppiness in US Dollar. The downside may however be capped amid easing worries over debt crisis in Euro Zone after successful bond sale by Spain and Italy. Also lending support is falling stocks and rising cancelled warrants at LME. Stocks at LME fell by 6,000 tons yesterday while cancelled warrants rose to 13.74% from 11.73% a day earlier, signaling strong physical demand. Prices will further track economic releases and its impact on global currency and equity markets. As for today, focus will be on US Trade Balance and University of Michigan Consumer Sentiment. Support for February copper is seen at Rs.405 while resistance is seen at Rs.418.
MCX Aluminum may note some decline tracking international markets, however the bias remains positive. Rising stocks at LME may weigh on the prices. However the downside may be capped as prices may seek support from recent production cuts and jump in cancel warrants at LME warehouses. Stocks at LME rose by 11,075 tons yesterday to and are nearing life time high of 49,83,175 tons while cancelled warrants hovered at 14.78%. Support for Aluminum January contract is seen at Rs.109 while resistance of Rs.113.
MCX Zinc may note some decline tracking international markets. Higher stocks at LME warehouses may weigh on the prices. However stocks at LME fell by 950 tons yesterday after declining by 1,625 tons last week while those at SHFE rose by 1,577 tons. Reversal in copper prices may lend support to Zinc prices. Support for MCX Zinc January contract is seen at Rs.98 while resistance is seen at Rs.101.8.
MCX Nickel may note some decline tracking international exchanges, however the downside remains capped. Weighing on prices is slight retreat in copper prices and choppiness in US Dollar. The downside may however be capped amid lower stocks at exchange warehouses. Stocks fell by 510 tons yesterday after falling by 210 tons last week. Support for MCX Nickel January contract is seen at Rs.985 while resistance is seen at Rs.1,025.
MCX Lead may note some decline tracking slight retreat in copper prices. However the downside remains capped amid higher replacement demand in winter and higher cancelled warrants ratio at LME warehouses. Stocks at LME fell by 975 tons yesterday while cancelled warrants eased to 8.94% from 9.12% on Wednesday. Support for MCX Lead January contract is seen at Rs.102.5 while resistance is seen at Rs.105.5. www.goldennifty.com
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