II:Base Metals Trading Sideways Craving For Italy's Bond Auction
Short covering was seen in Aluminium at MCX
Base metals that rose during the opening of the trade remained on sidelines on Wednesday as the investors are craving for the Italy bond auction to be held today 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.
Comex Copper future for the most active March contract was trading at $3.445 a pound, up by 1.06% (4 cents). SHFE Copper future for most active March 2012 contract settled at 55270 yuan per tonne, up 0.24% (130 yuan). Likewise at MCX, Copper for delivery in February was surging by 0.69% or Rs. 2.8 at Rs. 406 per kg.
Italian Treasury is set to sell EUR 9 billion of 179 day bills and EUR 2.5 billion of zero-coupon 2013 bonds. Italy will also sell as much as EUR 8.5 billion of 2014, 2018, 2021 and 2022 bonds tomorrow. The auctions will be carefully watched considering that 10-year yield is still struggling around 7% level, which spurred Greece, Ireland and Portugal to seek bailout.
The dollar index edged down by 0.05% at 79.76 against the basket of 6 major currencies as the sliding euro and equities are weighing on the sentiment in the market.
Among other metals in the domestic market at MCX, short covering was seen in Aluminium but the long liquidation was seen in zinc. However, the depreciation in rupee was providing support to the metals at domestic bourses. Nickel for delivery in December tested a high of Rs. 991.7 per kg and low of Rs. 982.2 per kg in intraday and is now trading at Rs. 984.9 per kg, up 0.33% or Rs. 3.2. Zinc shed by 0.26% or Rs. 0.25 at Rs. 97.3 per kg. MCX lead remained unchanged at Rs. 105.45 per kg.
Aluminium was strengthening by 0.85% or Rs. 0.9 at Rs. 106.45 per kg with an intraday high of Rs. 106.5 per kg and low of Rs. 105.75 per kg. The open interest dipped by 17.23% to 2287 lots indicating short covering and volume traded as of now stood at 3556 lots compared to 3135 lots traded last day. The contract was trading just below 18-day EMA and RSI stood at 47.13.
