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Sep 19, 2011, 02.20 PM IST | Source: Moneycontrol.com

Outlook on Lead, Nickel, Zinc: Kotak Commodity

Kotak Commodity has come out with its report on Lead, Nickel, Zinc.

Outlook on Lead, Nickel, Zinc: Kotak Commodity
Kotak Commodity has come out with its report on Lead, Nickel, Zinc.

Copper- MCX Copper may trade with negative bias tracking international markets. LME copper trades 2% lower in early trades today amid concerns of slowing demand for industrial metals due to bleak global outlook. Persistent fears over faltering growth in US and Euro Zone coupled with fears of monetary tightening in developing nation is weighing on the prices. Further risk aversion amid sovereign debt crisis in Euro Zone, choppiness in equities and higher stocks at exchange warehouses may also weigh on the prices. Stocks at LME warehouses rose by 800 tonnes last week and are at higher levels for the year however those at SHFE fell by 1239 tonnes. The downside may however be capped amid ongoing strike at Peru and Indonesian copper mine. Prices may further track economic releases and its impact on global currency and equity markets. As for today, focus will be on US NAHB Housing Market Index. Support for November copper is seen at Rs.402 while Resistance is seen at Rs.416.

Aluminum- MCX Aluminum may trade with negative bias tracking weakness in copper prices. However recent fall in stocks at LME warehouses may cap the downside. Stocks at LME fell by 22950 tonnes last week while those at SHFE fell by 1334 tonnes. Support for Aluminum September contract is seen at Rs.109.5 while resistance of Rs.112.5.

Zinc- MCX Zinc may trade with negative bias tracking copper prices. Also, growing surplus may weigh on the prices. According to the latest monthly bulletin from the Lisbon-based International Lead and Zinc Study Group (ILZSG) the global zinc market was in surplus by 237,000 tonnes in the first seven months of the year. However recent drop in stocks at LME warehouses may cap the downside. Stocks fell by 7050 tonnes last week while those at SHFE fell by 142 tonnes. Support for MCX Zinc September contract is seen at Rs.99 while Resistance is seen at Rs.102.5.

Nickel- MCX Nickel may trade with negative bias tracking international markets. Weighing on prices is bleak global sentiment, choppiness in equities and firmness in US Dollar. The downside may however be capped amid falling stocks at LME. Stocks fell by 1410 tonnes last week. Also supporting prices is news of Nickel ETF by China later in the year. Further, according to the latest monthly bulletin from Lisbon-based International Nickel Study Group (INSG) global nickel market was in supply deficit by 8,000 tonnes in the first seven months of 2011. Support for MCX Nickel September contract is seen at Rs.980 while Resistance is seen at Rs.1025.

Lead- MCX Lead may trade with negative bias tracking copper prices. Also higher stocks at exchange warehouses may weigh on the prices. Stocks at LME rose by 7625 tonnes last week. Further prices may come under pressure amid growing surplus. According to the latest monthly bulletin from the Lisbon-based International Lead and Zinc Study Group (ILZSG) the global lead market was in surplus by 127,000 tonnes in the first seven months of the year. Support for MCX Lead September contract is seen at Rs.110 while Resistance is seen at Rs.113.5.

Steel- NCDEX Steel may continue to be under pressure amid bleak sentiment and lack of demand in domestic markets. Support for NCDEX Steel September contract is seen at Rs.29200 while Resistance is seen at Rs.29750. 

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