Base metals intraday

Major Headline:

· Copper rose in London, extending two weeks of gains, on speculation that more snow in China will further disrupt output of industrial metals including aluminum. Lead rose to a two-month high.

· MCX Copper registered days high at Rs. 312.30 per kg, Nickel rose towards Rs. 1128 per kg , Lead Feb also followed other basemetals and registered days high near Rs. 121.30 per kg.

· Copper climbed 6.5 percent last week, the most since May, after China's worst snow storms in decades last month hampered the production and transportation of commodities. More snow and rain is expected in the next 10 days, the China Meteorological Administration said today.

· Goldman Sachs Group Inc. said it may take ``months'' for China to restart metals smelters after the severe weather. ``Such energy intensive raw material production activities are likely to be a lower priority for power restarts relative to residential or labor business activities,'' analysts including Jeffrey Currie in London, said in a report dated Feb. 8.

· Hedge-fund managers and other large speculators cut their net-short positions, or bets on price decline, in New York copper futures by 23 percent in the week ended Feb. 5, from a week ago, according to Washington-based U.S. Commodity Futures Trading Commission data.


MCX Copper Feb

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 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: Buy at 305-304 for the target of 309 and 313 with stop loss at 301.75

MCX Zinc Feb

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 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 Feb: Buy at 95.50 for the target of 98.50 and 99.80 with stop loss at 94.60

MCX Nickel Feb

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 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 Feb: Buy at 1095 for the target of 1135 and 1160 with stop loss at 1073

MCX Lead Feb

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 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 Feb:

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