As expected in our morning CDRR report, gains in metals pack has been witnessed fading on the back of strong rupee coupled with weakening sentiments. The early morning gains in Asian equities have remained intact, while the European bourses have drifted lower and are slightly down.
Revised austerity for Greece and lack of action plan by ECB has also weighed on the shared currency and may continue to weaken base metals in the afternoon. After weak PMI numbers, the inventory may also indicate further weakness and may support downside. Overall, remaining short might be advised for the afternoon session.
As expected, Euro slowly came down and would have been keeping the metals under pressure.
FreeÂ RecommendationÂ :Â Zinc Aug MCX: Sell @ Cmp:102.40 Target1:101.9,T2: 101.40 with stop loss above 103.15â€¦CMP 102.40 @ 06.08.12,12:04 PM