Basemetals intraday

MajorUS Data:

· The U.S. Commerce Department said that retail sales were down .6% in February, weaker than expected. Excluding autos, sales were down .2%.

· The U.S. Labor Department said that jobless claims were unchanged last week at 353,000.

Major Headline:

· Copper, little changed in New York, may gain for the second straight day as a slumping dollar boosts the appeal of commodities as a hedge against inflation.

· The dollar fell below 100 yen for the first time since 1995 and dropped to a record against the euro today. Copper, traded in dollars, surged 26 percent this year before today, partly on
demand for metals as a store of value.

· The prospect of lower U.S. borrowing costs may continue to weaken the currency, Zeman of LaSalle said. Trading in interest- rate futures shows a 98 percent chance the Federal Reserve will reduce its benchmark interest rate to 2.25 percent in its next policy announcement on March 18.

· Copper pared earlier gains after a report showed U.S. retail sales fell in February, signaling the economic slump is worsening. The U.S. is the second-biggest copper user after China.

· BHP Billiton Ltd.'s Cerro Matoso nickel mine in Colombia halted all deliveries after a 22-day
strike depleted stockpiles, a union official said.

· Union officials met with Social Protection Minister Diego Palacio after the company refused to hold talks, union President Roger Herrera said today in a phone interview from the mine in the northern province of Cordoba. The miners began striking Feb. 27 to demand increased hiring to replace employees who have left.

· Aluminum declined in London as stockpiles advanced to almost a four-year high, indicating weak demand in the U.S., the world's second-largest consumer and producer of the metal. Copper also fell. Inventories tracked by the London Metal Exchange rose 23,775 tons, or 2.5 percent, to 987,325 tons, the exchange said in a daily report, the highest since June 17, 2004.

· Tin climbed to a record for a third day in London, leading gains in all metals, after China, the
world's largest producer of the metal, reported a drop in output.

· Tin production fell 16 percent in the first two months from a year ago, China's National Bureau of Statistics said today in a statement. The metal has advanced 21 percent this year as China and Indonesia restricted exports.

LME Inventory update (13 March, 2008)

alumi +23775

coppe -1025

nickel -54

lead -25

zinc -200


MCX Copper April

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: Buy at 337 Target 343 and 349 Stop loss 334.50


MCX Zinc March

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: Buy at 105 Target 108 and 110 Stop loss 103.10


MCX Nickel March

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: Buy at 1280 Target 1310 and 1330 Stop loss 1265

MCX Lead Feb

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: Buy at 124 Target 128 and 130 Stop loss 122.50

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