Since morning, base metals futures are trading mostly flat at MCX. At LME, metals have declined slightly however due to rupee depreciation downside got restricted at our domestic platform. The Asian equities are trading down by 0.2 to 1.4 percent while the European markets are also expected to remain weak as the Spain bailout fades.
Fundamentally, the spot activities have remained weak and may continue to weigh on gains. In the afternoon the inventory and economic release from UK may further weaken metals pack, hence we continue with our morning view of remaining short for the afternoon session.
LME Inventory Data:
- Copper UP 4350
- Zinc DOWN -2450
- Lead UP 300
- Nickel DOWN -150
- Aluminum DOWN -11575
Cancelled warrant Ratio:
- Copper UP 0.90
- Zinc DOWN (0.08)
- Lead DOWN (0.22)
- Nickel DOWN (0.21)
INVENTORY IMPACT: Base metals inventory witnessed slight drawdown apart from Lead and Copper, while the cancelled warrants have declined indicating weak spot activity. Overall it may have negative impact on metal futures. Copper warrants have improved in the past 2 days and may limit much downside
Free Recommendation (HIGH RISK) :
Sell Copper MCX @ 1st lot at 411.60 2nd lot at 413.90 ,T1:409.60,T2:407.60,SL:415.50 – www.Commodity20.com @ 12.06.12,07:25 PM
Copper June MCX : Carried forward short position initiated at 411.60 is in progress. Recommend to hold the position with given stoploss above 415.50.
Free Recommendation (Update) :
One Can Book Profit in Copper,Sold@ 411.60, Low Made:409.50,Target1 Achieved,Profit:2000+ per lot – www.Commodity20.com @ 12.06.12,08:01 PM