Base metals intraday

Major US Data:

· The U.S. Census Bureau said that housing starts were at an annual rate of 1.065 million units in February, down .6% from January's pace and down 28.4% from a year ago. Building permits in February were down 7.8% from January's pace. May lumber is steady.

· The U.S. Labor Department said that producer prices were up .3% in February and up 6.4% from a year ago. Excluding food and energy costs, prices were up .5% in February and up 2.4% from a year ago.

LME Inventory update (18 March, 2008)

alum 5000

coppe -925

nicke 420

lead 75

zinc -625

Major Headline:

· Copper output in Zambia, Africa's biggest producer of the metal, rose 22 percent in December, the
Bank of Zambia said, without giving a reason for the increase.

· Output totaled 49,257 metric tons in the month, compared with 40,076 tons a year earlier, the Lusaka-based central bank said in a report today. Exports climbed to 49,745 tons, from 42,428 tons previously, it said.

· Cobalt production rose to 396 tons in December, from 234 tons a year earlier, while exports increased to 356 tons, from 274 tons, it said.

· BHP Billiton Ltd., the world's biggest mining company, said ``excessive and continuous'' rain in
South Africa is causing blockages to coal supply from its mines.

· BHP is ``seeking to minimize the impact'' on power utility Eskom Holdings Ltd. and export customers, spokeswoman Bronwyn Wilkinson said in an e-mailed statement today.

· Nickel rebounded from the biggest drop in more than three years in London on speculation demand
will expand as the Federal Reserve cuts interest rates to bolster the U.S. economy. Tin rose to a record and copper also gained.

· Economic growth in emerging markets including China has underpinned demand for commodities, Merrill Lynch & Co. analyst Daniel Hynes said. The Fed will probably cut its benchmark rate
by at least 1 percentage point today to boost confidence in financial markets and revive the world's biggest economy, interest-rate futures show.

· Eskom Holdings Ltd., South Africa's state-owned electricity utility, said power cuts across the
country increased to as much as 3,000 megawatts as it struggles to get wet coal into its plants.

· U.S. copper futures traded tentatively higher early Tuesday, with stabilizing equity markets providing some relief to investors still trying to regain their confidence following Monday's sharp sell-off.



MCX Copper April (Daily Chart)



Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:MCX Copper April: Sell at 336 Target 328 and 324 Stop loss 338.50

MCX Zinc March (Daily Chart)



Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:MCX Zinc March: Sell at 103 Target 98.60 and 96 Stop loss at 104.20

MCX Nickel March (Daily Chart)



Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:MCX Nickel March: Sell at 1245 Target 1220 and 1205 Stop loss at 1267

MCX Lead Feb (Daily Chart)



Technical Outlook:

Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:MCX Lead March: Sell at 119 Target 116 and 114 Stop loss 120.20

MCXARUN
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