Base Metals

Base metals finished up on MCX on short covering ahead of the long weekend holiday on the benchmark LME.Copper most active February finished at Rs.272.30/kg, rising by Rs.1/kg. It tossed in the range Rs.271.75-273/kg.

Meanwhile both copper and zinc futures on SHFE hit their daily limit up for the second consecutive time on Friday despite the sixth interest rate hike of 7.47% by China.

LME will be closed on 24th, 25th and 26th December for Christmas.

Global copper use rose 7.1 percent in the nine months ended Sept. 30, boosted by Chinese demand, the International Copper Study Group said.



MCX Copper Feb (Daily Chart)

Technical Outlook:

Momentum studies have turned bullish; 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 increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Copper Feb: Buy at 268-270 for the target of 276 and 280 with stop loss at 265.50

MCX Zinc Dec (Daily Chart)

Technical Outlook:

Momentum studies have turned bullish; 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 increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Zinc Dec: Buy at 94.50-94.00 for the target of 97.00 and 98.80 with stop loss at 93.20

MCX Nickel Dec (Daily Chart)

Technical Outlook:

Momentum studies have turned bullish; 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 increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Nickel Dec: Buy at 1060-1055 for the target of 1075 and 1090 with stop loss 1045

MCX Lead Dec (Daily Chart)

Technical Outlook:

Momentum studies have turned bullish; 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 increasing from over sold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 18-day EMA. The downside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Lead Dec: Buy at 106 –105.50 for the target of 108 and 109.80 with stop loss at 104.40