II:Base Metals Trading Sideways Amid The Mixed US Economic Data
Short covering was seen in Zinc at MCX
Base metals were trading sideways during the mid morning on Wednesday, 28th December amidst the mixed economic data released from the US. The rise in US consumer confidence to an eight month high in December evidenced that economy is on track for recovery but the fall in home prices in October compared to the previous month suggested that recovery was still far away from being on a solid footing. This led the investors to stay on sidelines during the mid morning after a slightly higher opening on Wednesday. As the LME market is open after a long holiday weekend, the volumes might be improving comparatively to the previous day.
Comex Copper future for most active March contract was trading at $3.42 a pound, edged up by 0.32% or 1 cent compared to $3.409 a pound traded last day. SHFE copper future for the most active March 2012 contract was trading at 55200 yuan per tonne, up 0.11% (60 yuan). At MCX, Copper for delivery in February was surging by 0.42% or Rs. 1.7 at Rs. 404.9 per kg with its intraday high at Rs. 405.1 per kg and low at Rs. 403.2 per kg.
Investors were also craving for the Italy bond auction that planned to sell 9 billion euros ($12 billion) of 179-day bills and as much as 2.5 billion euros of zero-coupon 2013 bonds on Wednesday.
US Conference Board Consumer Confidence jumped sharply to 64.5 in December compared with 55.2 in November. S&P/Case-Shiller Home Price Indices declined by -3.4% in October on y-o-y basis while it registered a 3.5% decline in previous month September.
The dollar index edged up by 0.03% at 79.82 against the basket of 6 major currencies as the sliding equities and euro prompted investors to shift onto the safe haven dollar.
Among other metals in domestic market at MCX, short covering was seen in Zinc and depreciating rupee also cramping the metals from its fall. Nickel for delivery in December was augmenting by 0.4% or Rs. 3.9 at Rs. 985.6 per kg. Lead was trading flat at Rs. 105.75 per kg and Aluminium was trading higher by 0.52% or Rs. 0.55 at Rs. 106.1 per kg.
MCX Zinc was gaining by 0.67% or Rs. 0.65 at Rs. 98.2 per kg with its intraday high of Rs. 98.25 per kg and low of Rs. 97.75 per kg. The open interest dipped by 10.06% to 5392 lots indicating short covering and volume traded as of now stood at 3182 lots compared to 3168 lots traded last day. The contract was trading below 9-day EMA and RSI stood at 40.12.
