Energy: Crude oil is also expected to trade sideways. Positive economic data from Japan and South Korea also alleviated some of the concerns about slowing momentum in the global economy and buoyed investors risk appetite. Given the anemic demand recovery in the U.S. and Europe, the underlying crude demand fundamentals do not warrant an extension of last year`s sharp rebound. While short-term worries about Greece`s fiscal health have eased, concerns about other fiscally vulnerable economies in the region such as Portugal and Spain could push oil prices lower.
Bullions: Bullions are expected to remain on mixed path tracking volatile dollar index. Gold jumped to its highest in nearly two weeks on Monday before losing some of the gains to profit taking, bracing for volatile days ahead as the euro remained vulnerable to selling. World Gold Council`s forecast of China`s consumption was ignored and there was hardly any safe-haven buying following deadly blasts in Moscow as investors turned their attention to a series of U.S. data to be issued that could set the direction of currencies.
Base metals: Base metals are expected to trade in tight range except nickel tracking mixed movement in LME and SHFE. Nickel prices have had resurgence so far this year, boosted by strike action in Canada and the re-emergence of small scale demand from stainless steel mills. Copper gained for a third day and nickel climbed to the highest price since June 2008 as falling stockpiles boosted investor confidence in global demand. Anticipation of international economic recovery has been a supportive factor for base metals, although confidence in this outlook was shaken at times. Stockpiles of copper tallied by the Shanghai Futures Exchange dropped 8.1 percent last week, the largest decrease since December 2009.Nikcel has support of 1050 while copper has support at 338 in MCX.
