Base metals complex edged down on the back of the dollar correction from the recent lows and weaker-than-expected economic data prompted concerns about recovery hopes.

Nickel and Copper were the losers for the day, falling by more than 3% on MCX.

The U. S. dollar bounced from its 2009 low against the euro bank sources in Asia said they would keep buying U. S. government debt even if the U. S. credit rating were to be cut. A stronger U. S. currency makes dollarpriced metals less attractive to non-U. S. investors.

U. S. companies cut 532,000 jobs in May, more than economists had expected - ADP Employer Services.

U. S. service sector, which accounts for 80 percent of economic activity, contracted for the eighth straight month in May - The Institute for Supply Management.

London Metal Exchange warehouse stocks fell by 2,700 tonnes to 306,525 tonnes on Wednesday.

Canceled warrants -- metal set to leave warehouses -- declined to 37,550 tonnes from 40,175 tonnes the previous session. U. S. nonfarm payroll jobs are expected to fall by
520,000 in May, compared with a 539,000 drop in April - Reuters poll.

Base Metals: We expect base metals to remain subdued during the day and may see a further correction. The economic data released on Wednesday was weaker than expected and prompted the demand concerns which may add pressure to the prices. We recommend selling Lead as it has not fallen in line with other base metals and we may see a downfall in Lead as there is no fundamental that is supporting the prices of Lead.

Copper prices pushed lower yesterday during the later session. However the up-trend is Still intact. Thus One can buy for intraday, with Stop loss of 230, targeting 237.38. If prices breach the support at 230, then prices may fall further to 225 levels.

Nickel prices also fell in the latter half of the session yesterday. Nickel prices closed at 657.4, below the curtail levels of 660 which brings in slight negativity. If prices break 650 levels during the day, then prices may fall further to 630-35 levels. The ADX is still into positive, thus Nickel can be bought at lower levels around 630.