Basemetals intraday

Major US Economic Data

- The Institute of Supply Management said that its index of U.S. manufacturing increased from 48.3 to 48.6 in March, better than expected, but still a sign of contraction. The June U.S. T-bonds are trading lower.

- The U.S. Census Bureau said that construction spending was at an annual rate of $1.122 trillion in February, down .3% from January's pace and down 3.5% from a year ago. Private residential construction was down for the 24th consecutive month. May lumber is steady to lower.

Major Headline:

- Copper fell in New York as rising Asian stockpiles signal slowing demand from China, the world's largest user of the metal.

- Copper declined in Asia on increased concern that a U.S.-led economic slowdown will crimp demand for the metal used in wires and pipes.

- Economists are expecting a report this week to show the U.S. lost jobs for a third straight month in March, adding to evidence the world's largest economy has slipped into a recession.

- Mitsubishi Materials Corp., Japan's third-largest copper producer, will increase monthly refined copper output by 12 percent in the first half of this fiscal year.

- Production will rise to 29,056 metric tons a month in April-September, compared with 25,998 tons a year earlier, the Tokyo-based company said in a statement today.

- Sumitomo Metal Mining Co., Japan's largest nickel producer, will boost production of the metal by 18 percent to 36,000 tons of refined nickel in the fiscal year starting today, compared with an estimated 30,500 tons last year, the Tokyo-based company said in a statement.

- Aluminum price forecasts for the next three years through 2010 were raised by Lehman Brothers Holdings Inc.'s equity-research analysts including Christopher LaFemina as energy costs rose. Prices will average $1.30 per pound in 2008, compared with an earlier forecast of $1.25, the analysts said in a report dated today. They will average $1.25 next year and 2010, from previous estimates of $1.18 and $1.12 respectively. Energy accounts for about a third of the total cost of aluminum production.

- Xinjiang Xinxin Mining Industry Co., China's second-largest producer of nickel, said 2007 profit rose 86 percent because of higher product prices Net income increased to 827 million yuan ($118 million), or 0.50 yuan a share, from 444 million yuan, or 0.32 yuan, a year earlier, the Xinjiang province-based company said in a Hong Kong exchange filing today. Nickel is used to make stainless steel.

- China, the world's largest steel producer, has posted economic growth of more than 10 percent a year since 2003, fueling demand for steel used in cars, buildings and appliances.The Asian nation may increase output of stainless steel by 23 percent this year, Macquarie Group Ltd. said March 27. Sales rose 82 percent to 1.58 billion yuan, the statement said. Nickel for cash delivery averaged $37,088.67 a ton in 2007 on the London Metal Exchange, 54 percent higher than the average $24,155.32 a ton in 2006


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 334-333 Target 339 and 342 Stop loss at 327

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: Buy at 92 Target 94 and 96 Stop loss at 90.80MCX Zinc April: Buy at 92 Target 94 and 96 Stop loss at 90.80 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 Zinc April: Buy at 92 Target 94 and 96 Stop loss at 90.80

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 1190 Target 1155 and 1135 Stop loss at 1218

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 112.50 Target 109 and 107 Stop loss 113.65

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