Basemetals intraday

Major Headline:



* Copper has soared this year, and was the second-best performing commodity last quarter, as demand jumped from hedge funds and other speculators. Investors are buying the metals to protect against inflation and on speculation gains from commodities will outpace stocks and bonds this year.
* Citigroup boosted its 2008 copper forecast by 15 percent, citing continuing robust demand from China, the world's largest metals user. Goldman Sachs Group Inc. also raised its price projections today. Copper futures in New York surged 30 percent this year before today as demand boomed from investors.



* Peru Government Declared Doe Run Strike `Inadmissible’, and Copper output in Chile, the world's biggest producer of the metal, will rise 5.5 percent this year, a mining group said and output will climb to 5.9 million metric tons in 2008,



* Codelco's output slid for a third year in 2007, dropping 6.6 percent to 1.67 million metric tons. Output this year will be similar to last year's total, Arellano said. Output will rise in 2009 to about 1.7 million tons, the company's press office said yesterday



* About 300,000 tons of planned copper mine production has been lost so far this year, according to Macquarie Group Ltd. There has undoubtedly been a fund element to the strength in prices, however, it is also true that the supply and demand fundamentals for copper have so far proven to be much stronger than expected in 2008 on account of supply losses at the mine level and at Chinese smelters and refineries.



* Copper rose in Asia to less than $100 shy of its record, as investors expected the Federal Reserve to lower borrowing costs this month, weakening the dollar and increasing the appeal of commodities as a haven.



* The London Metal Exchange, the world's largest copper marketplace, said floor-trading volumes fell to the lowest in at least four months, outpaced by electronic transactions. Open outcry on the floor accounted for 27.8 percent of volume in March, compared with a 41 percent for the bourse's Select trading system, the LME said in a statement on its Web site yesterday.



* Aluminium, copper, nickel and lead will trade higher than previously forecast this year because of Demand for infrastructure in China, the world's biggest consumer of metals and china's drive to expand infrastructure will continue beyond this year's Olympics in Beijing in August. The rail network is scheduled to double by 2020 and seaport capacity to rise 280 percent by the same year, Citigroup said.



* Tin exports from Indonesia, the world's second-largest producer of the metal, rose by 16 percent in March from February, trade ministry data showed. The nation exported 8,606.27 metric tons worth $157.53 million last month, compared with 7,431.3 tons worth $118.4 million in February



* Nickel for delivery in three months in London. It fell 21 percent last year, the biggest decline among metals on the exchange, as stainless-steel makers cut output by 2.9 percent on weaker demand and record nickel prices in the first half, according to the International Stainless Steel Forum. Stainless steel containing nickel accounted for 51 percent of fourth-quarter output, down from 80 percent a few years ago, the Brussels-based International Stainless Steel Forum said April 4.

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 343 Target 349 and 352 Stop loss at 339.50

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 93.50 Target 96 and 97.50 Stop loss at 92.80MCX Zinc April: Buy at 93.50 Target 96 and 97.50 Stop loss at 92.80 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 93.50 Target 96 and 97.50 Stop loss at 92.80

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: Buy at 118.70 target 117.10 and 115.80 stoploss at 119.90

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