Basemetals intraday

Major Headline:



- Copper dropped on the London MetalExchange, erasing an earlier advance.

- BHP Billiton Ltd., the world's largest mining company, said labor union workers at its Cerro Matoso nickel mine in Colombia voted to end a monthlong strike that disrupted deliveries.

- BHP declared force majeure on deliveries from the mine last week after the strike, beginning Feb. 27, depleted stockpiles of nickel, used to make stainless steel. The price of nickel has risen 16 percent this year, partly because of the strike and on rising demand from China, the world's largest consumer of the metal used to make stainless steel.

- AES Gener SA, Chile's second-largest power company, signed supply contracts with copper-mining units of BHP Billiton Ltd.

- Minera Escondida Ltda. will receive 220 megawatts from a new coal-fired plant for 18 years and Minera Spence SA will get 90 megawatts for 15 years, Santiago-based Gener said in a March 29 regulatory filing.

- The metal also has gained this quarter as a slumping dollar increased demand for commodities as a hedge against inflation. The U.S. currency is headed for its biggest quarterly drop against the euro since 2004.

- The UBS Bloomberg Constant Maturity Commodity Index has gained 16 percent in 2008, the most in at least a decade.

- Peru's copper production rose after February as Freeport-McMoRan Copper & Gold Inc. increased output from its mine.

- Output rose 22 percent from a year earlier to 100,701 metric tons in February, the 13th straight monthly gain, after Phoenix- based Freeport completed an $850 million expansion at its Cerro Verde mine last year, the Energy & Mines Ministry said today in an e-mailed statement.

- Zinc output rose 6 percent, while silver rose 1.2 percent, lead rose 2.7 percent and molybdenum production doubled. Tin fell 3.3 percent and iron fell 9 percent.

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 EMA. The downside closing price reversal on the daily chart is somewhat negative. Recommendations - MCX Copper April: Buy at 333 Target 342 and 346 Stop loss 327.80

MCX Zinc 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 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 April: Sell at 94.50 Target 92 and 89.90 Stop loss at 95.60 are bullish but are now at overbought levels and will tend to support reversal action if it occurs. The 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 negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

MCX Nickel 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 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 April: Sell at 1210 Target 1180 and 1165 Stop loss at 1233MCX Nickel April: Sell at 1210 Target 1180 and 1165 Stop loss at 1233



MCX Lead 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 Lead April: Sell at 114 Target 111 and 110 Stop loss 115.65

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