Short selling seen in Copper, Lead and Zinc Base metals gains fleeted and found to be trading sideways during the mid morning on Tuesday, 29th November as the investors remained cautious outcome of Europe finance ministers meeting later in the day. Investor's feel that its premature to be confident that Europe's leaders are close to a solution to the 2-year-old debt crisis and eyeing on Euro zone finance ministers meeting who are expected to approve detailed rules for the region's 440 billion euro bailout fund that will clear the way for the facility to attract cash from private and public investors to its co-investment funds that could provide some respite against the fears of contagion. . But, the Moody's affirmation that it could downgrade the subordinated debt of 87 banks across 15 European Union nations on concerns that governments would be too cash-strapped to bail out holders of riskier bank debt in times of stress conspired with Fitch Ratings negative outlook on the United States' AAA credit rating citing the Super committee failure to agree for on at least $1.2 trillion in budget cuts kept earlier session gains under check. Italian bond yields were still higher than 7% that may lead the country to have a financial assistance. But, the Italy's plan for a bond sale of 8 billion euros later on Tuesday is eyed for further clarification. The dollar index plunged by 0.83% at 78.97 against the basket of 6 major currencies as the elusive reports on European debt crisis resolution kept the investors cautious. In domestic market at MCX, short selling is seen in Copper, Lead and Zinc and Nickel was the only metal moving northwards favored by short covering in the metal. Copper for delivery in November was trading flat at Rs. 385.9 per kg. Nickel for delivery in November was firming by 0.47% or Rs. 4.2 at Rs. 900.5 per kg. Aluminium was flat at 105.3 per kg and Lead was trading flat at Rs. 104.2 per kg. MCX Zinc was also trading flat at Rs. 100.75 per kg. At the SHFE, Copper futures for most active Febuary 2012 contract was trading at 55470 yuan per tonne, up 630 yuan or 1.15% higher. Comex Copper futures for most active December contract was trading at $3.3725 a pound, up 0.36% or just 1 cent compared to the previous day that ended at $3.3605 a pound.

Source