Base metals complex witnessed a downside in the last trading session on the back of weak U. S retail sales data and appreciating dollar against the euro.

India copper futures reversed early gains, Copper June contract ended at Rs. 224.10 after hitting a high of Rs 232.2, as the dollar rebounded and on signs of a possible slowdown in buying from China.

Copper inventories continued to fall. In LME registered warehouses, stocks dropped by 5,275 tonnes to 373,750 tonnes, their lowest level in four months. While cancelled warrants rose to 76,225 tonnes from Tuesday's 74,500 tonnes, 20 percent of the total stockpile.

Nickel fell the most in two weeks in London on reduced demand from stainless-steel makers, which accounts for 64% of nickel demand.

China's copper output in April rose to its second highest level ever, a day after its copper imports hit a new record high, strengthening the possibility of a looming oversupply, this could halt the country's purchases.

ThyssenKrupp AG, Germany's largest steelmaker said, "its stainless-steel orders plunged 46 percent in the six months to March 31." Moreover, most mills in Europe are running at 50% of their capacity and order books are poor.

China, the largest user of metals, saw its industrial production growth slowed to 7.3 percent in April from a year earlier, compared with 8.3 percent in March.

Base Metals: Non ferrous metals look weak for the day. In spite of bullish inventories, Copper and zinc went down yesterday on weak U. S retail sales data .We expect this weakness to persist during the day. Lead may decline by 2-3% during the day.

Copper prices continued to fall lifting the - DI line on the upside. However, copper may take support today around 222 level of immediate medium term uptrend. Selling may trigger in Copper if it breaches 222 levels with a downside target of 217-218.

Lead prices have seen an uptrend in the short term. However, prices have been range-bound for this week. Prices have taken support at 70.55 level in the earlier two sessions, breaching this level on downside can trigger a fall till 68.

Nickel prices fell down sharply in spite of strong ADX in the previous session. Yesterday's fall has triggered the cross-over of RSI with MA on downside, indicating negativity in Nickel. Therefore, we can remain short in Nickel today below 622, targeting 606 and 596 on downside.

Zinc declined yesterday with the downfall in entire base metals complex. Zinc prices are now edging at a very thin support around 72.35, the previous low. Breaching this support on down side can test 70.25 levels to cover the gap left in the earlier sessions. Thus, one can sell Zinc on breaking 72.35 levels on downside targeting 70.5.