Base Metals

Base metals on MCX, LME were off day's high due to inventory rises on LME monitored warehouses.

On LME monitored warehouses, copper stocks increased by 2,400 tonnes to 2,01,000 tonnes, Nickel by 342 tonnes to 48,126 tonnes, Lead by 2,050 tonnes to 48,900 tonnes and Zinc by 6,775 tonnes to 95,150 tonnes.

Comments by Treasury Secretary Henry Paulson Monday suggesting there is no simple fix for the nation's housing crisis added to worries fed by last Friday's Labor Department jobs report.

Last week the metal complex finished on a subdued note as sentiments were dampened by negative US employment data. As per reports, US unemployment rate stood at 5%, the highest in two years. In December the number of jobs added were a meager 18,000 as against a forecast of 70,000.

Meanwhile being the start of the year there could be some index re-balancing in international markets that could influence prices in domestic bourses, says a Mumbai-based trader. He adds there could be some Chinese buying as well ahead of their Lunar New Year in February.


MCX Copper Feb (Daily Chart)

Technical Outlook:

Momentum studies are still 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 positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Copper Feb:



MCX Zinc Jan (Daily Chart)

Technical Outlook:

Momentum studies are still 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 positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Zinc Jan:

MCX Nickel Jan (Daily Chart)



Technical Outlook:

Momentum studies are still 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 positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Nickel Jan: Buy at 1090-1080 for the target of 1135 and 1160 with stop loss at 1065

MCX Lead Dec (Daily Chart)

Technical Outlook:

Momentum studies are still 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 positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Lead Jan: Buy at 101 for the target of 103.80 and 105.50 with stop loss at 99.60

MCXARUN
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