II:Base Metals Were Choppy During Mid Morning On Drooping US Dollar
Investor's were much concerned about the announcement of German constitutional court about the legality of Germany's participation in Europe's €440 billion ($625bn) rescue fund today which will mitigate the worries of euro zone sovereign debt crisis. On the back of gloomy economic data releases from US, the better than expected ISM Non-manufacturing and the Obama plans to propose spark job growth by injecting more than $300 billion into the economy next year gave some respite against the growth fears in US economy. The blend of this news led the metals to have choppy trading during the mid morning on Wednesday with limited gains.
Institute for Supply Management reported that US ISM Non-Manufacturing rose to 53.3 in August from 52.7 in July. It is the 21st consecutive month of growth registered by the indicator.
The dollar index slipped by 0.42 at 75.6 against the basket of 6 major traded peers during the mid-day before the speech by Chicago Federal Reserve President and the release of the central bank's Beige Book survey of economic conditions today.
In domestic market at MCX, Copper for delivery in November strengthened by 0.6% or Rs 2.5 at Rs 418.6 per kg with its high at Rs 419.1 per kg. The open interest added 9.82% to 18,711 lots and volume traded as of now stood at 16,741 lots against 84,593 lots traded last day. The contract was trading just above 9-day EMA and the RSI stood at 51.77
Nickel for delivery in September surged by 1.35% or Rs 13 at Rs 977.2 per kg with its high at Rs 977.9 per kg. The open interest dipped 7.5% to 11,865 lots indicating a bit of short covering in the market and volume traded as of now stood at 9630 lots against 46,088 lots traded last day. The contract was trading just below 9-day EMA and the RSI stood at 42.01.
Aluminium was seen trading flat at Rs 109.9 per kg and Lead was trading tad higher at Rs 112.9 per kg. MCX Zinc was trading flat at Rs 101.9 per kg.
At the SHFE, Copper futures for most active November contract was trading at 67610 yuan per tonne, up 830 yuan. Comex Copper futures for most active December contract was trading at $4.0995 a pound, down by 1.1% or 4 cents compared to the previous day that ended at $4.056 a pound.
