Buy base metals on dip, recommends Nirmal Bang
Nirmal Bang has come out with its fundamental outlook on base metals. According to the research firm, any positive data from the US reported is likely to lend further support to the prices of metals. Buying at dips is recommended for the day, says Nirmal Bang.
July 22, 2013 / 13:38 IST
Nirmal Bang's report on base metals
Industrial metals prices traded steady on Friday, propped up by a weak dollar and reassurance that the U.S. Federal Reserve would be flexible in scaling back stimulus measures, but capped by concern over demand.The global copper market showed a 50,000 tonne surplus in April, and a surplus of 266,000 tonnes in the first four months of the year, compared with a 429,00 tonnes deficit in the same months last year, reflecting weak demand in major consuming countries.Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 0.6 percent from last Friday, the exchange said on Friday.Finnish mining company Talvivaara withdrew its full-year nickel production forecast on Friday, citing a slow recovery after heavy rains disrupted production in September.The U.S. Federal Reserve is "reviewing" a landmark 2003 decision that first allowed regulated banks to trade in physical commodity markets, it said on Friday, a move that may send new shockwaves through Wall Street.The U.S. commodities market regulator has put Wall Street banks and other big traders on notice for a possible investigation of their metals warehousing businesses following years of complaints about inflated prices.FUNDAMENTAL OUTLOOK: Industrial metals prices are trading higher on international bourses today. In the evening session we have the existing home sales data from the US. Any positive data reported is likely to lend further support to the prices of metals. Buying at dips is recommended for the day.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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