Base metals: Base metals are expected to trade choppy tracking mixed movement in LME and SHFE. Nickel prices can trade on higher side and can test 1080 in MCX. Nickel prices, which are driven in large part by stainless demand, have outpaced all of their base metal counterparts to jump around 20% this year, driven in part by a recovery in stainless output. Stainless steel mills, which account for more than two thirds of nickel demand, will produce some 15% more to 30.5 million ton this year versus 26.2 million last year. Lead can trade in range of 91-93 and zinc to trade in range of 99-102.
Bullions: Bullions are expected to remain on mixed path tracking volatile dollar index. 16 euro zone leaders agreed to a plan to support debt-burdened Greece in tandem with the International Monetary Fund can support the euro which was battered down badly. Low interest rates usually support the demand for gold, which is seen as an inflation hedge.
Energy: Crude oil is also expected to trade sideways. China`s fuel oil imports dropped 21.1% last month from a year earlier to 1.81 million tones. It is expected that global oil demand will grow faster than new supplies outside OPEC`s control in 2010, but stocks are likely to rise as OPEC is pumping cruder than the market needs with prices above USD 80 a barrel. Natural gas to remain on back foot tracking weak overseas clues.
