IRIS reported that Broking firm Kotak Commodity Services gave following outlook on base metals segments:
Copper - MCX Copper may note some decline amid firmer Indian rupee however downside is limited. LME Copper trades in a narrow range after yesterday's slide. Supporting price is firmness in equity market on hopes that US policymakers will reach a deal to avert the fiscal crisis. 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 first half of next year.
However weighing on price is higher exchange warehouse stocks and uncertainty about major economies. Prices will further track economic releases and its impact on movement in global currency and equity markets. Focus today will be on German unemployment, euro-zone confidence indices, US GDP, weekly jobless claims, pending home sales and Kansas Fed manufacturing index. Also in focus will be Italian bond auction and US fiscal talks. Support for MCX Copper November contract is seen at INR 428 while resistance is seen at INR 436.
Aluminum - MCX Aluminum may note some decline tracking cues from international exchange however downside is limited. LME Aluminum price have eased a bit as move above USD 2,000 per tonne triggered some profit taking. Also weighing on price are record high stocks at LME warehouses and drop in cancelled warrants. However aluminum may gain support from firmness in industrial metals higher energy costs and financing deals which cause apparent shortage in physical market. Also International Aluminium Institute data on Monday showed that world unwrought aluminium stocks were at 1.298 million tonnes in October versus 1.316 million tonnes in September. Support for Aluminum November contract is seen at INR 109 while resistance of INR 112.5.
Zinc - MCX Zinc may note trade under pressure tracking cues from international exchange. LME Zinc prices trades little changed amid mixed cues. Supporting zinc price is sharp rise in cancelled warrants at LME warehouses in last few days and firmness across industrial metals. The cancelled warrants ratio stood at 51% of total stocks on Wednesday. However weighing on price are higher stocks at exchange warehouses. Support for MCX Zinc November contract is seen at INR 108 while resistance is seen at INR 111.
Nickel - MCX Nickel may note some decline tracking cues from international exchange. LME Nickel retreated from recent highs weighed down by higher stocks at exchange warehouses. Stocks at LME rose 1.4% to 136,386 tonnes the highest since January 2011. Improvement in supply from Indonesia also weighed on nickel price. However supporting nickel price are revised estimates of lower supply overhang in physical market next year and slack demand from China. Support for MCX Nickel November contract is seen at INR 925 while resistance is seen at INR 965.
Lead - MCX Lead may note some decline tracking cues from international exchange however downside is limited. Higher stocks at exchange warehouses are weighing on lead price. Range bound movement in industrial metals is also weighing on price. However supporting price is recent rise in cancelled warrants ratio and higher winter related demand. Support for MCX Lead November contract is seen at INR 120 while resistance is seen at INR 123.5.
