Copper 3M contract rose by $ 95, closing the day at $ 4545 on LME, on the back of expectations of better housing data from U. S. Copper on MCX couldn’t hold its ground because of sharp appreciation in rupee against the dollar and lost Rs. 2.5 during the last trading session.

Nickel also declined sharply by Rs. 18.9 on MCX and settled at Rs. 591.2.

Aluminum inventories touched a record high of nearly 4 million tonnes at LME on Monday.

Experts expect the rate of groundbreaking for new homes in the United States to rise in April to an annual rate of 520,000 units from 510,000 units in March.

India copper futures extended losses on Monday afternoon pressured by a strong rupee, which makes the dollar quoted asset cheaper, and weak international markets, analysts said.

Copper cancelled warrants -- material set to leave the warehouses -- fell to 59,850 tonnes from Friday's 61,300 tonnes.

The global zinc market was in surplus by 187,000 tonnes in the first three months of 2009 data showed on Monday.

Base Metals have rebounded after strength in global equity markets. Strengthening rupee may trigger some sell off in base metals initially but trend for the day is up. We expect Copper, Zinc and Nickel prices to trade up during the day.

Copper prices fell during the day to support levels of 212, but surprisingly recovered at the close, thus looking positive. Copper may see resistance at 222-23 on upside. However, if copper prices break 212 levels then prices are expected to take support at
209 levels during the day. Looking at the Opening mouth of ADX with rising -DI, one should hold for taking long term positions. Breaking 209 levels on downside can open new down-ward movement till 199-200 levels. Thus, one should either wait for taking long positions or maintain a SL of 209.

Nickel prices also fell taking support at 572- 75 levels. Thus, Nickel can move upside till 606 during the day, with a support of 575. However, breaking this support at 572-75 can trigger a down-ward movement till 545-50 levels.