As expected, base metals opened on a weaker note and are trading down by 0.6 to 1.1 percent at MCX since morning.

The Asian equities traded down while the European markets also opened in the negative territory. Down gradation of Banks and pessimistic economic scenario ahead of key European summit may continue to weaken riskier assets including base metals. The Chinese demand is subdued after the weekend holidays and fundamentally, cancelled warrants may also remain weak and may support downside.

In late evening,the US housing release may improve slightly after slight increase in new home sales and may provide slight pullback while the overall trend may continue to remain bearish

Update @ 25.06.12,01:30 PM

LME Inventory Data:

  • Copper  UP      225
  • Zinc    DOWN    -175
  • Lead    UP      150
  • Nickel  UP      204
  • Aluminum        DOWN    -9675

Cancelled warrant ratio:

  • Copper  DOWN     (0.20)
  • Zinc    DOWN     (0.03)
  • Lead    DOWN     (0.07)
  • Nickel  UP       0.08

INVENTORY IMPACT: Metal inventories witnessed stockpiling except Zinc and Aluminum while the cancelled warrants have also declined and may continue to weaken base metals. Overall it may have slight negative impact on base metals

Free Recommendation : Sell Copper MCX @ Cmp:415.5, T1:413.5, T2:411.5, SL: 418.50 @25.06.12,04:39 PM

Base Metals Update @ 25.06.12,05:00 PM

As foreseen in our morning report base metal futures have declined 0.5 to 1.1 percent. Weak equities and strong domestic currency have weighed on base metals futures resulting in price fall. The Asian equities closed on a weaker note while the European markets have also joined the declining league.Rising borrowing costs and Greece escape ahead of key Euro-summit may likely weaken the shared currency and may support down trend for base metals. In late evening, the US new home sales may increase slightly and may provide slight pullback in base metals where fresh selling might be initiated.

Overall amidst weak equities and declining manufacturing releases we recommend remaining short for the rest of the session.

 Free Recommendation (Update) : Copper Call, Sold @ Cmp:415.5,Low Made:413.35,Profit:2000+ per lot @25.06.12,07:16 PM

Free Positional Call, Sell Zinc MCX @ Cmp:102.95,Buy Lead @ Cmp:102.15 ,Current Differace : -0.8,Target1: +2, Target2: +4, StopLoss: -3, @25.06.12,10:02 PM (View Stands Until Expiry)

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