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MTECHTIPS:-COPPER
Copper, the leader of the base metals complex fell 2.12 percent on the back of rise in the risk aversion amongst market participants amidst worries over possible sharp tightening in the Federal budget as Fiscal cliff is nearing to an end. This is being reflected in the slowdown in the US business investment. This created bearish market sentiments. Strength in the DX also acted as bearish factor for the copper prices.Decline in LME Copper inventories by 1.2 percent however, cushioned sharp fall in the Copper prices week on week. LME Copper stocks stood at 2,19,800 tonnes. The red metal touched a weekly low $7,756.25/tonne and closed at $7,822/tonne on Friday.On the domestic front, prices declined 2.4 percent and closed at Rs.426.00/kg after touching a weekly low of Rs.421.30 /kg due to appreciation in the Indian rupee.Outlook From the intraday perspective base metal prices are expected to trade on a positive note due to mixed global market sentiments. Positive data from US economy may increase the demand for the red metal. However, marginal gains in the DX are expected to cap sharp gains in the base metals pack. Depreciation in the Rupee will act as a supportive factor for the base metal prices on MCX
Copper, the leader of the base metals complex fell 2.12 percent on the back of rise in the risk aversion amongst market participants amidst worries over possible sharp tightening in the Federal budget as Fiscal cliff is nearing to an end. This is being reflected in the slowdown in the US business investment. This created bearish market sentiments. Strength in the DX also acted as bearish factor for the copper prices.Decline in LME Copper inventories by 1.2 percent however, cushioned sharp fall in the Copper prices week on week. LME Copper stocks stood at 2,19,800 tonnes. The red metal touched a weekly low $7,756.25/tonne and closed at $7,822/tonne on Friday.On the domestic front, prices declined 2.4 percent and closed at Rs.426.00/kg after touching a weekly low of Rs.421.30 /kg due to appreciation in the Indian rupee.Outlook From the intraday perspective base metal prices are expected to trade on a positive note due to mixed global market sentiments. Positive data from US economy may increase the demand for the red metal. However, marginal gains in the DX are expected to cap sharp gains in the base metals pack. Depreciation in the Rupee will act as a supportive factor for the base metal prices on MCX
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