Base metals intraday

· MCX Copper erased declines on speculation that increasing demand from China will erode global inventories. Tin extended gains to a record. Copper April traded near Rs. 330 per kg following Comex trading.

· Copper inventories in warehouses monitored by the London Metal Exchange were little changed after climbing 13,850 tons, or 10 percent, in the previous two days. Imports of refined copper and alloys into China gained 7.1 percent in January from a year earlier, the customs office said Feb. 22.

· Prices in London have increased 23 percent this year compared with a 15 percent advance in the UBS Bloomberg Constant Maturity Commodity Index of 26 raw materials.

· LME copper inventories fell 100 tons to 149,125 tons, the exchange said today in its daily warehouse report. They jumped 7,625 tons yesterday and 6,225 tons on Feb. 22.

· Supply may expand in April through June when companies are due to start up some 500,000 tons of annual production capacity, The new mines include Codelco's Gaby in Chile, Equinox Minerals Ltd.'s Lumwana copper deposit in Zambia and Oxiana Ltd.'s Prominent Hill in Australia.

· China's Yunnan Tin Co., the world's largest producer of the metal, plans to raise output about 12 percent this year, according to an earnings statement distributed yesterday.

· MCX Nickel march traded at Rs. 1124 per kg, while Zinc March traded near Rs. 99 per kg. MCx Lead April registered days high near Rs. 130.50 per kg.

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 326 for the target of 332 and 337 with stop loss at 321.50

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 97.50 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 1120 for the target of 1148 and 1160 with stop loss at 1106

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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