Basemetals intraday

MajorUS Data:

· The US Labor Department stated that consumer inflation moderated in February that may compel Federal Reserve to keep on cutting interest rates to bolster U.S. economy’s growth. The prices also fell as supply worries eased as an OK Tedi mine strike in Papau New Guinea ended Friday. The strike resulted in a loss of 1,628 mt of copper.

Major Headline:

· Copper rose as stockpiles monitored by the London Metal Exchange fell to the lowest in six months, spurring speculation supply will trail demand. Tin climbed to a record for a fourth consecutive day.

· Copper stockpiles slid 2,725 tons, or 2.1 percent, to 125,225 tons, the lowest since Aug. 23, the LME said. There will probably be ``a very substantial'' deficit in the first half of this year, Barclays Capital said.

· Though, the gains were restricted by increase in SHFE weekly copper inventories for another consecutive week. The copper prices dipped in line with weakness in the US, UK stock markets, later session’s ease in crude oil prices and following growing concerns about the weakening performance of the US economy.

· China's export growth may rebound after March, as factories shut during last month's snowstorms and Lunar New Year break resume production, Trade Minister Chen Deming said.

· China's industrial production grew at the slowest pace in more than a year in January and February as exports slowed, helping the government's effort to cool the world's fastest- growing major economy. China's economy, the world's fourth largest, grew 11.4 percent in 2007, the fastest pace in 13 years.

· The nation's investment demand has helped drive global prices of copper and iron ore to records. Inflation, already at the fastest monthly pace in 11 years in February, may overshoot the government's annual target of 4.8 percent.

· Producer prices, the cost of goods as they leave the factory, rose at the fastest pace in three years while retail sales surged the most in nine years, partly on rising prices. China's consumer price index soared 4.8 percent in 2007, compared with the 2.1 percent average in the previous four years.

LME Inventory update (14 March, 2008)

alumi 19275

copper -2725

nicke -132

lead 250

zinc 925


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 1300 Target 1328 and 1345 Stop loss 1289

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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