Base metals intraday

· Copper was lower in early afternoon trade after hitting a 21-month high this morning as the LME reported a fresh build in stockpiles.

· MCX Copper April traded weak following international clues registered days low near Rs. 325.10 per kg, market re-retreated from days high of Rs. 337.90 per kg. MCX Zinc March followed red metal and traded near Rs. 100 per kg, MCX Lead March traded near Rs. 129.35 per kg.

· LME copper erased gains after stockpiles stored at exchange- monitored warehouses expanded 5.4 percent to 149,225 tons, the largest daily increase since Aug. 28. The deliveries were made to South Korea, the nearest location to China. LME-tracked inventory has dropped 24 percent this year.

· Before it, Copper traded near a two-year record in London on speculation that supply disruptions will drive prices higher. Tin rose to the highest since at least 1989.

· Open interest of copper futures, which measures outstanding positions that haven't been closed or liquidated, this month was at the highest since at least 2005 when Bloomberg records began, signaling demand for the metal. Hedge-fund managers and other speculators increased bets that New York copper will rise, according to U.S. Commodity Futures Trading Commission data.

· However, prices are continuing to take support from a flood of fund money into the commodities complex, which is supporting the metals at healthy levels this morning, analysts said.

· Copper has been well supported by falling stockpiles in recent weeks, and analysts fear the recent rebuild in inventories could pressure prices lower amid expectations the bleak US economic picture could weigh on consumption.

· Tin inventories have been weakened over the last year by restrictions on exports from major producer Indonesia. Falling exports from Asia have been a major factor in an 11 pct decline in LME-monitored stockpiles of the metal since the beginning of the year.

· Power shortages in China, the world's largest refiner of copper and also the biggest consumer, disrupted output and inflated prices. The metal's gains ``are excessive,'' Weinberg said.

· China canceled electricity price discounts for the aluminum and ferro-alloy industries in 18 provinces to save energy, the National Development and Reform Commission said in a statement today. The measure will increase production costs at companies including Aluminum Corp of China Ltd., the country's top producer.

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 March: 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: Buy at 128.50 for the target of 131 and 134 with stop loss at 126.20

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