Base metals intraday

· MCX Copper March rose to two year high of Rs. 337.35 and retrace back towards Rs. 330 per kg following international trend on inventory data and production disruption news all over world.

· MCX Zinc Feb. also followed red metals and traded towards Rs. 101 per kg. MCX Lead traded at Rs. 131.55, MCX Nickel Feb also Rs. 1137

· Copper fell from the highest in almost two years in London as higher prices attracted more metal into stockpiles and deterred buying in China, the world's largest user of the metal. Tin rose to its highest since at least 1989.

· Stockpiles monitored by exchanges in London, Shanghai and New York expanded to 199,469 metric tons, the highest since Feb. 8. More shipments may be going to China; Chinese buyers probably ordered metal arriving now in the fourth quarter, when prices were lower.

· Most stockpile increases were reported by the Shanghai Futures Exchange, where inventories jumped by 14,000 tons, or 45 percent, to 45,188 tons from a week ago. On the LME, 6,000 tons of copper arrived in Hull, in the U.K., which is typically not a location favored by European consumers.

· Copper has risen 25 percent this year as usage in China expanded. Imports of refined copper and alloys into the nation gained 7.1 percent in January from a year earlier to 158,073 tons, the customs office said today.

· Imports of copper into China may decline because LME prices are now more expensive than domestic prices,that doesn't imply less consumption overall.

· Aluminum output in China, the world's largest producer, last month fell 7.6 percent to 1.06 million tons, from the preceding month, the lowest since July, the London-based International Aluminium Institute said today on its Web site. The nation produced 958,000 tons in January 2007.

· China's worst snowstorms in 50 years last month delayed transport, caused power outages and forced production cuts at aluminum producers including Aluminum Corp. of China Ltd., the nation's largest.

MCX Copper April

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 April: Buy at 323-25 for the target of 328 and 337 with stop loss at 318

MCX Zinc March

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 97.00-97.50 for the target of 102 and 103.50 with stop loss at 95.40

MCX Nickel March

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 March: Buy at 1130-34 for the target of 1158 and 1170 with stop loss at 1120

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 March:

Sell at 134.35 for the target of 129 and 126 with stop loss at 137.60

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