Base Metals Intraday

· Copper dropped after closing at a record yesterday on speculation the rally was overdone.

· Before today, the metal surged 29 percent this year, partly on demand for commodities as a hedge against inflation. An economic slump in the U.S., the world's second-biggest copper user, may limit price gains.

· The U.S. currency reversed gains and fell against the euro and declined for a sixth day against the yen. Copper has climbed 29 percent this year as an index of the dollar against six currencies including the euro and the pound has dropped 4.1 percent.

· Shanghai copper climbed to the highest in almost 10 months after London Metal Exchange prices gained on increased investment inflow into alternative assets such as commodities. Aluminum also rallied.

· Gains in Shanghai base metals prices were led by increases in London, according to Macquarie Group Ltd. analysts led by Bonnie Liu. LME copper for delivery in three months rose yesterday to the highest since May 2006.

· China, the world's largest lead producer, will probably increase exports of lead products to avoid taxes on overseas sales of raw metal, consultant CBI (Shanghai) Co. said.

· The Chinese government imposed a 10 percent export tax on lead in June 2007, prompting a 52 percent drop in overseas sales last year. Incentives for exports of finished lead products including lead plate were maintained, said Jimmy Ding, an analyst at Shanghai-based BMI.

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: Sell at 340 Target 336 and 332 Stop loss 343.80


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: Sell at 112 Target 110 and 108 Stop loss at 113.80


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: Sell at 1320 Target 1290 and 1260 Stop loss 1339

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 137 Target 132 and 130 Stop loss at 138.80

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