Base metals

MCX Copper traded range bound on Monday between Rs. 273-279 per kg. Market was moderately bearish. Similarly Zinc Feb also traded between 88.95-91 levels.

· MCX Nickel was trading above 1070 per kg with moderate gains.

· Sales of new homes in the US fell faster than expected in December, for the second straight month, leaving home sales down in 2007 more than 40 pct from the year before, a calendar-year decline not seen in 25 years.

· The Commerce Department reported today that last month's new home sales were down 4.7 pct to a seasonally adjusted annual rate of 604,000 units, the lowest sales rate since 559,000 in February of 1995. Forecasters had expected only a minor drop to about 645,000 units.

· India's demand for steel is likely to grow eight per cent-nine per cent in 2008, driven by a strong domestic economy with increased spending on infrastructure, real estate, and corporate capital expenditures, Fitch Ratings said in its annual outlook for the country's steel sector Monday.

· The FOMC meeting will be a key event for the market this week, with potential for gains if policy-setters were to trim interest rates by 50 basis points, as many economists expect.

· India's State-run and private companies produced around 923,098 metric tons of aluminium in the first nine months of this financial year, up eight per cent from a year earlier, the latest government data show. The country produced around 515,308 tons of copper during the same period, up 12 per cent from a year earlier, the data show.

· The country also produced 313,802 tons of zinc during the period, up from 277,928 tons a year earlier. It produced 41,258 tons of lead during April-December, up around 29 per cent on year.

MCX Copper Feb (Daily Chart)



Technical Outlook:

Momentum studies are still 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 moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Copper Feb: Buy at 276.50 for the target of 281.50 and 283 with stop loss at 274.60

MCX Zinc Feb (Daily Chart)



Technical Outlook:

Momentum studies are still 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 moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Zinc Feb: Buy at 89.80- 90.00 for the target of 91.50 and 92.40 with stop loss at 89.10

MCX Nickel Jan (Daily Chart)



Technical Outlook:

Momentum studies are still 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 moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Nickel Feb: Sell at 1080-90 for the target of 1040 and 1025 with stop loss at 11105

MCX Lead Dec (Daily Chart)

Technical Outlook:

Momentum studies are still 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 moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Lead Jan:

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