The entire base metals pack ended the yesterday`s trading session lower in the range of 0.1% to 1% as the metal complex took negative cues from the slight negative Chinese economic data whose quarter on quarter GDP decline to 1.8% from 2.2%. In the Domestic markets too, the metals pack closed lower tracking the global prices with aluminum being the top loser when compared to its peers.
Throughout the early morning trading session today, base metals THREEM ahead at the London Metal Exchange platform are trade on a sundry note in spite of the positive cues from the Asian equities. Approaching to the commodity precise cues, we recommend selling copper from the higher levels as the commodity valor acquire negative cues from the Chinese GDP data. Coming to aluminum, we continue with yesterday’s view of buying on dips as the aluminum physical premiums in the US for the next thirty days have made another record high of 20.5 cents per pound, up from 20 cents per pound from last Thursday on tight supply due to cold weather conditions. Amongst the others, we remain cautiously bullish on nickel and recommend buying from the lower levels for small targets as concerns of higher inventories at the LME warehouses and 30 million tons of low grade Indonesian nickel ore at the Chinese ports still remains. We have a positive view on lead for the day and continue to recommend buying lead from the lower levels on the back of below-normal temperatures in the US and may boost the demand for lead. Lead might get further support from the fact that the lead premiums for delivery in the US increased from 10 cents per pound to 12 cents per pound, showing a heal thy pick-up in demand. We anticipate zinc to trade in a ranged mode with a slender negative bias as the commodity might be pressurized by the sharp fall in the c.w ratio
Asian markets this morning are trading positive by at least one percent. At the global front euro currency is trading marginally higher at $1.3550 and the USD index is comfortably holding above 81.20. The base metals 3M forwards at the LME platform are trading on a mixed note, where in we have a selling view on copper and buying view on select base metals like aluminum. From an economic data perspective we ZEW survey expectations from Germany and Euro-zone which are expected to show some uptick in its readings which might have a slight positive impact on base metals and energy. There are no major economic data expected from the US during the evening session.
BUY LEAD MCX JAN NEAR 134.20 SL 133.20 TGT 135.20
SELL COPPER MCX FEB ON RISE NEAR 457.70-458 SL 460.60 TGT 454.70
COMMODITY MARKET EVENTS FOR DAY TRADING:
| DATE | TIME | Region | Event of the Day | Period | Survey | Prior |
| 21.01.14 | 15:30 | GE | ZEW Survey Current Situation | Jan | 34.5 | 32.4 |
| 21.01.14 | 15:30 | GE | ZEW Survey Expectations | Jan | 63 | 62 |
| 21.01.14 | 15:30 | EC | ZEW Survey Expectations | Jan | — | 68.3 |