Golden Investment Research Private Limited
Date : 01.02.2012
Copper: MCX Copper may note some decline tracking international exchanges however the downside remains capped. Prices may come under pressure tracking weak macro economic data from US and impending uncertainty over Euro Zone debt crisis. Further reduced risk appetite, choppiness in US Dollar and global equities may also weigh on the prices. The downside may however be capped amid better than expected Manufacturing data from China. Also lending support is strong fundamentals amid falling stocks at LME warehouses and expectation of tightness in physical markets. Copper stocks at LME warehouses further declined by 2300 tons yesterday and are at the lowest level since September 2009 while cancelled warrants further rose to high of 29.37%, signaling strong physical demand. Prices will further track macro economic data and its impact on movement in global currency and equity markets. As for today, focus will be on US, UK and Euro Zone Manufacturing PMI and US ADP Non Farm Payrolls. Support for February copper is seen at Rs.410 while resistance is seen at Rs.424.
Aluminum: MCX Aluminum may note some gains tracking international markets, however the upside remains capped. Supporting prices is talks of production cuts and jump in canceled warrants at LME however record high stocks at LME may cap the upside. Stocks at LME fell by 2050 tons yesterday after hitting new life time high of 5010750 tons last week while canceled warrants stood at 19.37%. Support for Aluminum February contract is seen at Rs.110 while resistance of Rs.113.
Zinc: MCX Zinc may not some decline tracking international markets. Higher stocks at LME warehouses coupled with lack of demand in physical markets may weigh on the prices. Stocks at LME fell by 2775 tons yesterday after gaining 5025 tons last week. Prices may reverse if we witness sharp rally in Copper prices. Support for MCX Zinc February contract is seen at Rs.102.5 while resistance is seen at Rs.105.5.
Nickel: MCX Nickel may note some decline tracking international markets. Weighing on prices is slight rebound in US Dollar and choppiness in Asian equities. Also rising stocks coupled with lower cancelled warrants at LME warehouses may put pressure on the prices. Stocks fell by 264 tons yesterday after gaining 3348 tons last week. Prices may reverse if we witness sharp rally in Copper prices. Support for MCX Nickel February contract is seen at Rs.1000 while resistance is seen at Rs.1045.
Lead: MCX Lead may note some decline tracking international markets, however the downside remains capped. Weighing on prices is jump in stocks at LME yesterday and higher surplus in physical markets. However the downside may be capped amid higher replacement demand in winter and higher canceled warrants ratio at LME warehouses. Stocks at LME rose by 18,050 tons yesterday after declining by 4475 tons last week while canceled warrants stood at 12.78%. Support for MCX Lead February contract is seen at Rs.107 while resistance is seen at Rs.110.
Steel: NCDEX Steel may trade sideways with a negative bias amid mixed cues. Prices may come under pressure amid lack of demand in domestic markets however shortage of iron ore owing to clamp down on illegal mining may cap the downside. Support for NCDEX Steel February contract is seen at Rs.32,000 while resistance is seen at Rs.33,000.
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