Base Metals: MCX Nickel and Copper Trend for Today

Base metals are trading on higher note in MCX. Nickel, with a gain of more than 1%, is trading above 870 level and its nearest support level is 877 while on the downside, support level is 858. Downside is expected below 855 level.

Trend- Up, recommendation- Buy

Copper is facing a resistance at 224 level and a breach above the same would require to see more momentum in this base metal. However, major level to breach is 428-432 for a sustained upside. We can see copper to reach 424-427 if it consistently sustains above 221 level.

Trend – Up, recommendation- Buy

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MCX Base metals Reports: Commodity Updates

US equity markets ended higher with gains of 0.3 percent. Most of the Asian equity markets are
currently trading higher with gains of half a percent. Dollar index is trading lower by half a percent at close to 75.6 levels on the back of rebound in the Euro. Euro is moving higher after reports indicated that China might buy European bonds. In the morning session on LME, base metal prices are trading flat to higher with average gains of half a percent. On the fundamental front, cash copper prices have gained at an accelerated pace thereby giving indication that demand might be picking up. On the economic data front, German import price index is expected to decline. The key to watch would be the data from US, where in GDP growth is expected to accelerate along with personal consumption. Also both the initial jobless claims and continuing claims are expected to decline. Overall, given largely positive equity markets, lower dollar index and expectation of positive economic data from US, base metal prices are expected to remain on the higher side.

Courtesy- moneycontrol