II:Base Metals Trading Sideways On Strengthening US Dollar
Markets are fully biased on the tenterhooks of the European debt crisis contagion. Base metals were trading in sideways during the mid morning on Thursday, 17th November as the fears over the European debt crisis contagion was further exacerbated after France and Germany, Europe's two key powers, disagreed over whether the ECB should intervene more forcefully to halt the euro zone's accelerating debt crisis after its modest bond purchases which failed to calm the markets.
Further, investors are more worried about the warning given by the Fitch rating agency to US banking system creditworthiness citing worsening European debt crisis.
Currently, investor's are craving for consequences of bond auctions of Italy and Spain to be held later in the global trading day. Spain will auction up to 4 billion euros ($5.4 billion) of bonds and the same day France will sell as much as 8.2 billion euros of debt.
The dollar index edged up by 0.12% at 78.11 against the basket of 6 major currencies as persisted worries over European debt crisis contagion propelled dollar as safe haven.
In domestic market at MCX, short selling is seen in Copper and Nickel. Appreciating rupee is hammering the metals. Copper for delivery in November was plunging by 0.63% or Rs. 2.45 at Rs. 389.15 per kg with its high at Rs. 391.15 per kg and low at Rs. 388.6 per kg. The open interest added 5.29% to 20,211 lots compared with the 19,195 lots traded last day indicating short selling. The volume traded as of now stood at 27,177 lots compared with the 156,366 lots traded last day. The contract was trading just below 100-day EMA and RSI stood at 59.07.
Nickel for delivery in November was drooping by 0.6% or Rs. 5.5 at Rs. 915.6 per kg. Aluminium prices were easing by 0.41% or Rs. 0.45 at 108.15 per kg and Lead was also receding by 0.34% or Rs. 0.35 at Rs. 101.85 per kg. MCX Zinc was depreciating by 0.55% or Rs. 0.56 at Rs. 98.3 per kg.
At the SHFE, Copper futures for most active January 2012 contract was trading at 56760 yuan per tonne, down 450 yuan or 0.79% lower. Comex Copper futures for most active December contract was trading at $3.4715 a pound, down 0.37% or just 1 cent compared to the previous day that ended at $3.4845 a pound.
