Short covering favoring Zinc at MCX After encountering a choppy trading during the mid morning on Tuesday, base metals were trading northwards with thin volumes ahead of Christmas holidays. As most of the investors were craving for any constructive news out of Europe, the unexpected rise in German confidence gave some relief to the investors. Floundering dollar is also bolstering metals. Comex Copper future for the most active March contract was trading at $3.345 a pound, up by 1.1% (4 cents). SHFE Copper future for most active March 2012 contract settled at 53610 yuan per tonne, up 0.15% (80 yuan). Likewise at MCX, Copper for delivery in February was surging by 0.73% or Rs. 2.85 at Rs. 393.9 per kg. Ifo business-climate index for December rose to 107.2 from 106.6 in the prior month, against consensus that saw the level at 106. It constituted to the second increase in a row for the index seems to suggest that the economy has stabilized somewhat after slowing sharply in the previous three or four months. Besides the European debt woes plaguing the market, investors are trading cautiously craving for the US housing starts data that may give the status of the developments in the world's largest economy. The dollar index plunged by 0.55% at 79.81 against the basket of 6 major currencies as the slight rise in euro weighing on the dollar amid relief rallies in the market. Among other metals in the domestic market at MCX, short covering was seen in Zinc and depreciation in rupee was also supporting to the metal gains. Nickel for delivery in December tested a high of Rs. 991 per kg and low of Rs. 975.1 per kg in intraday and is now trading at Rs. 991 per kg, up 0.95% or Rs. 9.3. Zinc was gaining by 0.46% or Rs. 0.45 at Rs. 98.65 per kg. Aluminium was strengthening by 0.67% or Rs. 0.7 at Rs. 105.05 per kg and MCX lead was also gaining by 0.39% or Rs. 0.4 at Rs. 103.35 per kg.

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