Broking Firm Kotak Commodity Services Gave Following Outlook on Base Metals Segments

IRIS reported that Broking firm Kotak Commodity Services gave following outlook on base metals segments:

Copper - MCX Copper may note some gains tracking slight rebound in international markets however the upside remains capped. LME Copper trades slightly higher tracking firmness in Euro against US Dollar amid hopes that Greece will receive bailout. Also lending support to the prices is improvement in manufacturing activity in China and US. Further lending support to the prices is firmness in global equities. The gains may however be capped amid fiscal crisis in US and lingering worries over debt crisis in Euro Zone.

Prices may also come under pressure amid sluggish demand and rising stocks at exchange warehouses. Stocks at LME rose by 175 tonnes after gaining by 8,900 tonnes last week. Prices will further track economic releases and its impact on movement in global currency and equity markets. As for today, focus will be on Euro Zone Flash Manufacturing PMI, Spanish Bond Auction and EU Economic Summit. Support for November copper is seen at INR 421 while resistance is seen at INR 430.

Aluminum - MCX Aluminum note some gains tracking firmness in international markets however the upside remains capped. Lending support to the prices is higher cancel warrants ratio at LME however jump in stocks at exchange warehouses coupled with weak demand outlook may cap the upside. Stocks at LME fell by 6,000 tonnes after gaining by 65200 tonnes on Tuesday. Support for Aluminum November contract is seen at INR 105 while resistance of INR 108.

Zinc - MCX Zinc may note some gains tracking firmness in international markets however the upside remains capped. Supporting prices is recent jump in cancel warrants ratio at LME however higher stocks at exchange coupled with excess supply in physical markets may cap the upside. Stocks at LME fell by 2,825 tonnes after hitting new 17 year high of 1177075 tonnes on Tuesday while cancel warrants hovered above 46%. Meanwhile according to the latest monthly bulletin from Lisbon-based International Lead and Zinc Study Group global zinc market was in surplus by 137,000 tonnes in the first nine months of the year. Support for MCX Zinc November contract is seen at INR 103.5 while resistance is seen at INR 106.5.

Nickel - MCX Nickel may note some gains tracking firmness in international. Supporting prices is firmness in Euro against US Dollar and firmness in global equities. However rising stocks at LME warehouses coupled with higher surplus in physical markets may cap the upside. Stocks fell by 336 tonnes after gaining by 2646 tonnes last week. Meanwhile according to the latest monthly bulletin of International Nickel Study Group, the global nickel market was in supply surplus by 59,800 tons in the first nine months of 2012. Support for MCX Nickel November contract is seen at INR 905 while Resistance is seen at INR 935.

Lead - MCX Lead may note some gains tracking international markets however the upside remains capped. Lending support to the prices is hopes of robust winter demand coupled with higher cancel warrants ratio at LME however jump in stocks at exchange warehouses coupled with higher surplus in physical markets may cap the upside. Stocks at LME rose by 25,200 tonnes. Meanwhile according to the latest monthly bulletin from Lisbon based International Lead and Zinc Study Group, the global lead market was in surplus by 80,000 tonnes in the first nine months of the year. Support for MCX Lead November contract is seen at INR 118 while resistance is seen at INR 121.