Technicals: Copper, Natural gas, Nickel, Zinc, Lead

Copper (Rs 446.3)

MCX copper last week could not gain momentum to breach Rs 450 after its initial rise. The outlook is bearish. Immediate resistance is at Rs 453 and Rs 462. Short-term traders can sell near Rs 450 and accumulate if the contract extends its rise further to Rs 460. Stop-loss can be kept at Rs 465. Immediate support is at Rs 440. Decline below Rs 440 can take the contract lower to Rs 430 where the short-term traders can book profit. The medium-term outlook is also bearish and investors with a medium-term view can hold the short position for a fall to Rs 410.

Natural gas (Rs 253.4)

The MCX natural gas futures contract extended its rally further by 2.7 per cent last week. Although the contract has given up some of its gains, the outlook remains bullish. Immediate support is at Rs 248 and followed by a strong support at Rs 240. Hold on to the long position and accumulate more longs if the contract dips to Rs 248 and Rs 240. Retain the stop-loss at Rs 225 for a target of Rs 270. The contract is moving in a bull channel. The channel resistance at Rs 272 can halt the rally in the contract and can turn the price lower in the medium-term.

Nickel (Rs 844.7)

The MCX nickel contract failed to breach its 200-day moving average (currently at Rs 857) resistance last week. The contract has come off from the high of Rs 862.60 to close on a weaker note last week. The short-term outlook is bearish with significant resistances at Rs 857 and Rs 862. Traders can go short now and accumulate on rallies to Rs 855-860. Stop-loss can be kept at Rs 868 for a target of Rs 810. The medium-term trend is also down as long as the contract trades below Rs 900. Key support is at Rs 800, decline below which can drag the price lower to Rs 730 over the medium-term.

Zinc (Rs 115.75)

The 21-week moving average, currently at Rs 117.7 has restricted the MCX zinc contract from moving up for the second consecutive week. An intra-week bounce to Rs 117 in the coming week will be a good opportunity for taking short positions with a stop-loss at Rs 118.2. Though there is a support near Rs 114, the contract may fall to Rs 112 in the coming weeks where profits can be booked. The short-term view will remain bearish as long as the contract trades below Rs 121 for a fall to Rs 108. However, the medium-term trend is up with a strong support at Rs 105. Some fresh buying here can reverse the short-term downtrend.

Lead (Rs 127.4)

The MCX lead futures contract is coming down over the last four weeks. The outlook is bearish with resistances at Rs 129 and Rs 132. Rally to these resistances if seen in the coming week will be a good opportunity to enter short position with a stop-loss at Rs 133. Although the 200-day moving average support is near Rs 125, the contract looks weak for a fall to Rs 118 in the short-term. However, the medium-term outlook is bullish with a strong trend support near Rs 115.

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