Short selling seen in Nickel and Zinc at MCX Base metals were trading sideways on Tuesday as the improvement in manufacturing activity of China and India in December boosted the sentiment during the early trading but the concerns over the maturity of 157 billion euros in debt in the first three months of 2012 kept the gains under check. Comex Copper future for the most active March contract was trading at $3.4855 a pound, up by 1.44% (5 cents). Likewise at MCX, Copper for delivery in February was surging by 0.8% or Rs. 3.25 at Rs. 411.05 per kg. The official China Manufacturing PMI released over the weekend climbed back to expansion level of 50.3 in December from 49 in November. Meanwhile, China's non-manufacturing PMI also rose impressively from 49.7 to 56.0 in December. Also, HSBC and Markit reported that India's PMI added 3.2 points to 54.2 in December from 51.0 in November. On flip side, the lingering concerns over the outcome of the next round of talks from Brussels that scheduled on Monday during the next week conspired with the 157 billion euros in debt that is about to mature in the first three months of 2012 was curbing the huge gains in the metals. The focus on the US economic data to be released today such as ISM manufacturing, construction spending and FOMC meeting for December might provide further cues to the investors to trade. The dollar index plunged by 0.62% at 79.76 against the basket of 6 major currencies as the rise in euro and equities weighing on the safe haven dollar. Among other metals in per kg and low of Rs. 983.9 per kg in intraday and is now trading at Rs. 989.5 per kg, down 0.93% or Rs. 9.3. Zinc was trading flat at Rs. 98.7 per kg. Aluminium was strengthening by 0.42% or Rs. 45 at Rs. 107.65 per kg and lead was also trading flat at Rs. 107.85 per kg. the domestic market at MCX, Nickel for delivery in January tested a high of Rs. 1006.2

Source