Base metals, despite weakness in dollar some softness was seen in the whole complex on account of weak fundamentals and global cues, especially Lead plunged on account of profit taking as rally seems overdone.

Machinery orders in Japan, the world's second-largest economy, fell 9.3 percent in July from the previous month, in a sign corporate spending appetite may weigh on the country’s efforts to crawl out of its deepest slump in decades.

Rising inventories and worries that imports of the world's top copper consumer, China, may have dropped for the second straight month in August due to increased inventories from record imports in the first half is expected to keep prices under pressure.

The U. S. economy cut a fewer-than-expected 216,000 jobs in August. Unemployment rate grew to a 26-year high at 9.7 percent - U. S. Labor Department. August payrolls data reinforces view that economic recovery slower-than-expected.

We expect Base metals to further show some softness as fundamenatal weakness will put a cap to upside. Nickel is likely to remain under pressure due to expectation in increase in supplies & Lead which was the top performer will see some profit taking as rally seems overdone.