LME Inventory:

  • Copper   UP      1050
  • Zinc    DOWN    -1500
  • Lead    DOWN    -425
  • Nickel  DOWN    -894
  • Aluminum        DOWN    -10800

Cancelled warrant ratio :

  • Copper  DOWN     (0.24)
  • Zinc    DOWN     (0.14)
  • Lead    DOWN     (0.14)
  • Nickel  DOWN     (0.65)

Copper Update: Among entire metals pack, Copper has been relatively immune to the recent plunge witnessed by other metals this week. Fundamentally, metal inventory has witnessed stockpiling at LME and inventories increased by 10.95 percent. Even cancelled warrants were relatively low compared to last month.

Lower demand and weak economic activity has resulted in increased selling positions and due to short covering, prices have remained relatively stable. Since the June Contract is about to expire, we recommend remaining bearish in the short term. Based on technical analysis expecting prices to trade toward lower side and recommend to hold short positions with strict stop loss above 432 on weekly

Base Metals Update @ 05:00 PM
As foreseen in our morning report base metal futures are trading up by 0.19 to 1.45 percent at MCX.
The Asian equities closed positive while the European markets are also trading up by nearly 2 percent supporting gains in base metals. The European releases in the form German retail sales and Euro-zone money supply remained weak restricting much upside. Further, the European Summit is also likely to remain fragile on the back of rising borrowing costs of Spain and Italy. Common Euro bonds remains out of picture while fiscal union of the member nations may support slight gains in base metals.
Fundamentally, spot activities of Zinc are slowly ramping and may continue to restrict much downside.

In late evening, the US releases are expected to remain mostly unchanged and may continue to support gains. Even personal consumption may decline as increased investment in durables and mortgages may continue to support gains in metals. Overall, we recommend initiating buying positions at lower levels for the rest of the trading session.

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