copper,zinc,nickel,lead

Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from over bought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Copper Feb: Sell at 261-262 for the target of 257, 255 and 252 with stop loss at 265.50

Technical Outlook:

Momentum studies are bearish but are now at oversold levels and 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 negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Zinc Dec : Sell at 92.60-93.00 for the target of 91 and 90.10 with stop loss at 93.80



METALS & ENERGY

December 17, 2007



Bullion

Major Headline:

Gold fell to a one-week low as a rally in the dollar eroded the appeal of the precious metal as an alternative investment. Silver also declined.

The dollar rose the most against the euro since May 2005 after reports showing higher consumer prices fueled speculation the Federal Reserve will keep interest rates steady. Gold generally moves in the opposite direction of the U.S. currency. The metal has gained 25 percent this year as the dollar dropped 8.5 percent against the euro.

The dollar has climbed against 13 of the 16 most-actively traded currencies today as speculation grew that the Fed would be less likely to cut interest rates in the face of accelerating inflation.

The consumer price index rose 0.8 percent in November, the most in more than two years, the Labor Department said today. Wholesale prices rose 3.2 percent last month, the biggest jump in 34 years, the agency said yesterday.

The Fed has lowered the overnight lending rate 1 percentage point to 4.25 percent this year. Lower rates have bolstered gold and hurt the dollar, sending the U.S. currency to $1.4967 against the euro on Nov. 23, the lowest ever. The dollar traded as high as $1.4412 today. Gold reached $848 on Nov. 7, the highest since January 1980.

MCX Gold Feb (Daily Chart)



Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from over bought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Gold Feb: Sell blow 10180 for the target of 10140 and 10120 with stop loss at 10222

MCX Silver Mar (Daily Chart)

Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from over bought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Silver March: Sell at 18550-560 for the target of 18415 and 18355 with stop loss at 18652

Base metals

Major Headline:

Copper dropped, capping a second straight weekly decline, on concern a weakening economy will shrink U.S. demand.

The Federal Reserve's moves this week to lower borrowing costs and increase liquidity in the banking system may not be enough to alleviate the credit squeeze and stimulate growth, traders said. Copper dropped 5.4 percent this week on speculation U.S. consumption will decline.

Industrial production in the U.S. rose 0.3 percent in November as factories made more cars and consumer electronics, the Fed said today. Economists expected a gain of 0.2 percent, according to the median of 78 forecasts in a Bloomberg News survey. Copper has dropped 20 percent since Oct. 1 on speculation slowing growth will shrink U.S. demand.

Hindustan Zinc Ltd., India's largest producer of the metal, cut zinc prices by 1.3 percent, to match the fall in global rates. Zinc prices were cut to 108,200 rupees ($2,747) a ton from 109,600 rupees a ton effective today. 1.7 percent, or 2,000 rupees a ton to 113,900 rupees reduced lead prices, the company said in the statement.


MCX Copper Feb (Daily Chart)



Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from over bought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Copper Feb: Sell at 261-262 for the target of 257, 255 and 252 with stop loss at 265.50

MCX Zinc Dec (Daily Chart)



Technical Outlook:

Momentum studies are bearish but are now at oversold levels and 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 negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Zinc Dec : Sell at 92.60-93.00 for the target of 91 and 90.10 with stop loss at 93.80

MCX Nickel Dec (Daily Chart)



Technical Outlook:

Momentum studies are bullish but are now at overbought levels and 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 rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.



Recommendations:
wait to trade

Technical Outlook:

Momentum studies are bullish and now at sold levels and 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 negative as the close remains below the 18-day moving average. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Lead Dec: Sell at 98.20 –98.60 for the target of 96 and 94 with stop loss at 100.20