Base Metals

Base metals traded lukewarm on Multi Commodity Exchange [MCX] due to lack of international cues. The benchmark London Metal Exchange [LME] is closed on 24th, 25th and 26th for Christmas holiday.

Elsewhere, on Shanghai Futures Exchange [SHFE] copper futures hit its daily limit up for the third consecutive day in a row. Copper in Shanghai rose by the exchange-imposed daily limit for a second day as stockpiles in China slumped to a 10-month low, signaling that the world's biggest consumer of the metal may need to step up buying.

Copper dropped almost 14 percent in the past three months, pressured by a housing slump in the U.S., the world's second-biggest consumer. China's imports this year have helped to underpin the price of the metal, used in wires and pipes.

China's refined copper imports gained 56 percent to 103,410 tons in November 2007, compared with a year earlier, the Beijing- based customs office said on Monday. Imports of the metal rose 89 percent to 1.4 million tons in the 11 months to Nov. 30, the customs office said on Monday, citing revised final data.

Overseas purchases are expected to increase further in the next few months as the profit on imported copper has risen by as much as 3,500 yuan a ton so far this month.

Hindustan Zinc, India's leading zinc producer raised the prices of its Zinc products by INR1,000 to INR1,04,600/tonne.


MCX Copper Feb (Daily Chart)



Technical Outlook:

Momentum studies have turned bullish; will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Copper Feb: Buy at 274-275 for the target of 282 and 284 with stop loss at 270.50



MCX Zinc Dec (Daily Chart)

Technical Outlook:

Momentum studies have turned bullish; will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Zinc Dec: Buy at 96.00-95.50 for the target of 97.50 and 98.80 with stop loss at 94.80



MCX Nickel Dec (Daily Chart)



Technical Outlook:

Momentum studies have turned bullish; will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Nickel Dec: Buy at 1060-1055 for the target of 1075 and 1090 with stop loss 1045

MCX Lead Dec (Daily Chart)



Technical Outlook:

Momentum studies have turned bullish; will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Lead Dec: Buy at 106 –105.50 for the target of 108 and 109.80 with stop loss at 104.40