basemetals intraday

Copper

- Copper fell as increased stockpiles in warehouses monitored by commodity exchanges in London while weak ness in and Bullion and Energy supported the movement. Copper mostly fell because of expected slow down in US Economy and decreasing demand from china and other countries.

- Inventory at LME increased by 525 MT to 116100MT, which pressured metal down initially

- Copper's six-year advance will continue as prices double on the construction of power plants, railroads and other infrastructure in developing nations, U.S. Global Investors Inc

- Vedanta Resources Plc, India's largest copper producer, said output of the metal fell 1.6 percent to 124,000 tons in the three months ended March 31 after a power-grid failure in Zambia. Chile, the world's largest copper-producing nation, also faced a power-supply problem.

- Copper producers speaking at the CESCO copper conference in Santiago are suggesting mine output may be unable to keep up with demand this year, further pressuring already depleted stockpiles, analysts said.

- Meanwhile fears are growing that supply could be disrupted in South America after Peru's biggest federation of mine working unions called for a nationwide strike on May 12. Peru is the world's second largest producer of copper.

- A one-day strike at Codelco's Norte smelter in Chile was resolved yesterday without production being affected, according to reports.

- Russia will auction the Udokan copper deposit, the country's biggest untapped resource of the metal, on July 17, Interfax said, citing Natural Resources Ministry reports.


MCX Copper April Technical Outlook:

The daily stochastics have crossed 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 positive as the close remains above the 21-day EMA. The downside closing price reversal on the daily chart is somewhat negative. Market is expected to remain weak and the support is seen at 341.20 levels. If market breaches 341.20 may see prices to take further correction towards 337.30/331.10 levels. However if it holds above 347.50 may see prices to cover further on today. Major resistance is seen at 351.32, 357.70 and 361.50


Recommendations -MCX Copper April: Sell at 347-346 Target 342 and 338 Stop loss 351.40





Nickel

- MCX Nickel April prices fell following other base metals, bullion and energy. Market was down by almost 2% following LME movement. Crude oil and Gold traded lower almost by by 1.5% on strong dollar and weaker euro.

- Inventory at LME decreased by 186 MT to 51882MT, which pressured metal up initially

- Nippon Steel & Sumikin Stainless Steel Corp., Japan's biggest maker of the alloy, agreed to pay Xstrata Plc and Samancor Chrome Ltd. a record high $2 a pound for ferrochrome in the three months ending June 30.

- Demand for iron ore in China, the world's largest user of the commodity used to make steel, will likely increase 8 percent to 10 percent this year and in 2009, according to the China Metallurgical Mining Enterprise Association.

- China may slow the growth of imports this year because of record prices and as the government reins in lending and real estate expansion, Zou had said April 2. Imports of the commodity may rise 14 percent to 435 million metric tons this year, he said then. That's slower than the 17 percent gain last year.

- BHP Billiton Ltd., the world's largest mining company, and bid target Rio Tinto Group remain in negotiations with Asian steelmakers to set contract prices for iron ore for the year from the start of this month. Brazil's Cia. Vale do Rio Doce has already settled for an increase of as much as 71 percent.

- Rio Tinto wants to win a bigger price increase from Asian steelmakers than Vale to reflect the cheaper cost of supplying ore from Australia than South America, potentially breaking with the tradition of a single global benchmark.




MCX Nickel April Technical Outlook:



The daily stochastic have crossed down which is a bearish indication. The stochastic 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 above the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive. Market is expected to remain weak and the support is seen at 1135 levels. If market breaches 1135 may see prices to take further correction towards 1119/1089 levels. However if it holds above 1166 may see prices to cover further on today. Major resistance is seen at 1182, 1213 and 1229

Recommendations: MCX Nickel April: Sell at 1165 -60 Target 1130 and 1120 Stop loss at 1183







Zinc

- MCX Zinc April traded negative following other base metals, Bullion and energy prices. Lead closed with 2.80 % loss while Copper, Aluminium and Nickel were down almost by 1.5% following LME and comex prices.

- Inventory at LME increased by 1300 MT to 128550, which pressured metal down initially

- Padaeng Industry Pcl, Bangkok-based a zinc-producer, will increase zinc production by 10 percent this year, the Bangkok Post reported. Production from mines in Thailand, Laos, Burma and Vietnam will be increased to full capacity of 110,000 tonnes.






MCX Zinc April Technical Outlook:



The daily stochastic have crossed down which is a bearish indication. The stochastic 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 above the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive. Market is expected to remain weak and the support is seen at 91.5 levels. If market breaches 91.85 may see prices to take further correction towards 90.70/89 levels. However if it holds above 93.55 may see prices to cover further on today. Major resistance is seen at 94.70, 96.40 and 97.55



Recommendations -MCX Zinc April: Sell at 93.50 – 93.00 Target 91.80, 90 and 89 Stop loss at 94.70



Aluminium

- MCX Aluminium April remains slightly low following other base metals, bullion and energy prices decreased by 1% following LME prices.

- Aluminum Corp. of China said the Asian nation's consumption of copper has a lot of ``room to grow.''

- China's per-capita use of the metal is 2.8 kilograms (6.2 pounds), compared with at least 10 kilograms for developed countries, Chinalco Senior Business Manager Deng Gang said today at a copper conference in Santiago.

- China won't see a ``big jump'' in smelting capacity next year because supplies of copper concentrate are ``still tight,''he said.

- Rio Tinto-RTP: Down on Lower Expected 2008 Copper Output The shares are taking a hit this morning after the company announced that copper output would be "down a bit" from 2007 according to Reuters, but will recover in 2009. The stock had been in a very bullish configuration up to this news.





MCX Aluminium April Technical Outlook:



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. Market is expected to remain positive and the resistance is seen at 122.83 levels. If market breaches 122.83 may see prices to take further upside towards 124.40/125.40 levels. However if it holds back below 120.30 may see prices to fall further on today. Major support is seen at 119.30 and 117.80


Recommendations -MCX Aluminium April: Buy at 119-118 Target 123, 125 and 128 Stop loss at 115


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