II:Short Selling Seen In Copper, Lead And Nickel While Other Metals Remain Lackluster
Persist worries over the European sovereign debt crisis intensified the investors fears of more losses ahead and prompted them of short selling in metals like Copper, Lead, and Nickel while other metals remain in lackluster note. Meanwhile, Asian development Bank cut its 2011 growth forecast to 7.5% from April excluding Japan also weighed on the sentiment. Additionally, investor's focus is shifted onto the conference call to be held by Greek Prime Minister George Papandreou today with German Chancellor Angela Merkel and French President Nicolas Sarkozy amid rising speculation that Greece will default.
In the economic front, market participants awaited for the data to be released today on U.S. producer price index, retail sales and business inventories data.
The dollar index edged up by 0.02% at 77.08 against the basket of 6 major currencies amid the rebound in euro.
In domestic market at MCX, Copper for delivery in November tested a high of Rs. 419.05 per kg and low of Rs. 415.8 per kg in intraday and is now trading at Rs. 416.8 per kg, down by 0.73% or Rs. 3.05. The open interest added 10.02% to 20,350 lots indicating short selling and volume traded as of now stood at 53,362 lots against 115,754 lots traded last day. The contract was trading just above 5-day EMA and the RSI stood at 51.84.
Among other metals at MCX, Nickel for delivery in September tested a high of Rs. 1018 per kg and low of Rs. 1003 per kg in intraday and is now trading at Rs. 1007.5 per kg, down by 0.92% or Rs. 9.4. The open interest added 9.14% to 8203 lots indicating short selling and volume traded as of now stood at 9954 lots against 53,446 lots traded last day. The contract was trading just below 50-day EMA and the RSI stood at 57.1.
Lead for delivery in September tested a high of Rs. 115.25 and low of Rs. 113.6 in intraday and was weakening by 0.96% or Rs. 1.1 at Rs. 113.75 per kg. The open interest added 15.22% to 3149 lots indicating short selling and volume traded as of now stood at 8631 lots against 14,878 lots traded last day. The contract was trading just below 9-day EMA and the RSI stood at 50.97.
Aluminium was trading flat at Rs. 111.4 per kg and MCX Zinc was trading flat at Rs. 102.95 per kg.
Copper futures November contract in Shanghai settled at 65580 yuan per tonne, down 910 yuan or 1.37% higher. Comex Copper futures most active December contract was trading at $3.937 a pound, down by 0.83% or 3 cents compared to the previous day that ended at $3.97 a pound.
