Ours has been one of the very few reports that has been predicting a general uptrend in base metals in spite of discouraging economic scenario. The logic is simple as the stock markets have lost to of ground in past one year and unless there is material change in the situation, there is little incentive to bet on the downside. Same can be said for the base metals, although it is quite likely that base metals are likely to underperform equities in the next one year due to certain inherent fundamental weakness. Copper looks good over 1,570 dollars, although, retest of 1,550 dollars can't be ruled out in the immediate future. Expect further fund buying between 1,520-60 dollars range. Aluminium is expected to come under heavy selling pressure and only if resilient fund buying emerges, aluminium can then seriously pose a threat to the 1,400 dollars level. So far it appears to be an uphill task. Zinc has almost achieved its objective of close over 800 dollars. Nickel also gained rapidly to close around 7,400 dollars.
NSTL
