II:Base Metals Remain Lackluster, Nickel Gained On Short Covering
Despite better than expected US economic data released yesterday, base metals ended mostly lower on Monday, 29th August at MCX. The huge selling in the market on all metal contracts expiry today at MCX and lack of cues from the LME market that was closed for a holiday yesterday weighed on the market sentiment. Nickel was the only metal, which ended higher on short covering in the market.
US Bureau of Economic Analysis reported that US Personal consumption expenditures have increased 0.8% in July above the market expectations of a 0.5% increment, while personal income rose at a 0.3% pace, slightly below the 0.4% expected, while the savings rate dipped to 5.0% in July from 5.5% in June, which shows that US citizens dipped into savings on more confidence on economic recovery.
Meanwhile, the National Association of Realtors reported the number of contracts to purchase previously owned U.S. homes fell by 1.3% in July to 89.7 from 90.9 for the first time in three months, a sign that lower prices and borrowing costs aren't luring in buyers.
The dollar fell by 0.1% at 1.4516 due to rise in euro on increasing hopes of economic recovery in Europe.
In domestic market at MCX, Nickel buoyed by 0.25% or Rs. 2.5 at Rs. 1010.5 per kg with its high at Rs. 1021.4 per kg. The open interest dipped by 12.31% to 5493 lots indicating short sellers resisted in the market covering their positions and volume traded stood at 20,972 lots against 4105 lots trade last day.
In the domestic market at MCX, Copper for delivery in August plunged down by 0.47% or 1.95 at Rs. 414.5 per kg with its high at Rs. 417.5 per kg. The open interest dipped sharply by 11.64% to 8304 lots and volume traded stood at 56,450 lots against 4790 lots trade last day. The contract was just below the 50-day EMA and the 14-day RSI stood at 55.94.
Aluminium ended flat at Rs. 107.5 per kg and Lead ended flat at Rs. 115.7 per kg. MCX Zinc ended flat at Rs. 103.25 per kg and
In overseas market at Comex, Copper futures for most active September contract was trading lower at $4.089 a pound, up 0.2% or 1 cent compared to the previous day that ended at $4.099 a pound.
