IRIS reported that Broking firm Kotak Commodity Services gave following outlook on base metals segments:
Copper - MCX Copper may trade under pressure amid stronger Indian rupee and rangebound movement in international market. LME Copper trades little changed holding on to the sharp gains noted in last few days. Supporting price is upbeat US housing data, firmness in euro and equity markets. Also supporting price is expectations that improvement in Chinese economy will support demand. Meanwhile, market analysts expect that copper supply shortage will extend into the H1 of next year. However weighing on price is higher exchange warehouse stocks and uncertainty about health of major economies. Concerns about US fiscal crisis will persist unless a deal is reached. Prices will further track economic releases and its impact on movement in global currency and equity markets. Focus today will be on German retail sales euro zone unemployment, US personal income and spending and Chicago PMI. Support for MCX Copper February contract is seen at INR 434 while resistance is seen at INR 442.
Aluminum - MCX Aluminum may trade under pressure amid strength in Indian rupee and stability in international market. LME Aluminum trades higher as move above USD 2,000 per tonne level increased further buying interest. Supporting aluminum price is firmness across industrial metals higher energy costs and financing deals which cause apparent shortage in physical market. However weighing on price are record high stocks at exchange warehouses and slack Chinese demand. China Nonferrous Metals Industry Association said that aluminum consumption rose 5.8% to 14.4 million tonne in first Q3 down 5% than same period last year and the slowest pace since 2000. Support for MCX Aluminum December contract is seen at INR 110.5 while resistance is seen at IRN 114.
Zinc - MCX Zinc may trade under pressure on back of strength in Indian rupee. Internationally, zinc price are trading higher gaining support from firmness in copper and other industrial metals and sharp surge in cancelled warrants at LME in last few days. The cancelled warrants ratio stood at 51.2% of total stocks on Thursday. However weighing on price are higher stocks at exchange warehouses and demand uncertainty. Support for MCX Zinc Dec. contract is seen at INR 108.5 while resistance is seen at IRN 112.5.
Nickel - MCX Nickel may trade with a downward bias amid Indian rupee's appreciation against the US dollar. Internationally, nickel price are trading higher on back of firmness across industrial metals, marginal rise in cancelled warrants ratio at LME and revised estimates of lower supply overhang in physical market next year. However weighing on price is slack demand from China, improvement in supply of nickel ore from Indonesia and higher stocks at exchange warehouse. Support for MCX Nickel Dec. contract is seen at INR 925 while resistance is seen at INR 950.
Lead - MCX Lead may trade under pressure on stronger Indian rupee and rangebound international price. Supporting LME lead price is higher cancelled warrants ratio on LME and expectations of higher winter related demand. However weighing on price are higher stocks at exchange warehouses. Lead stocks at LME stand at to 362,350 tonnes the highest since April 27th. Support for MCX Lead December contract is seen at INR 119.5 while resistance is seen at IRN 123.5.
