SEPT 2 TUESDAY

SHORT TERM TREND : BEARISH

LONG TERM TREND : BEARISH

S1 RS 321 , S2 RS 316

R1 RS 325 , R2 RS 329

SELL BELOW RS 323

STOP LOSS RS 326

TARGET RS 318.

Copper falls as dollar gains.

Copper futures fell 3.2 percent on Monday under pressure from

gains in the dollar, rising London Metal Exchange stocks and

worries about demand.

Volumes were low with the U.S. market shut for Labor Day.

LME three-month copper closed at $7,305 per tonne from $7,510

at the close on Friday. The metal, used in power cables and

construction earlier fell as low as $7,268, its lowest level since

August 15.

The dollar rose to its highest this year against a basket of major

currencies, boosted by a sharp fall in oil prices.

A firm U.S. currency makes dollar-priced metals more

expensive for holders of other currencies.

LME copper stocks are at their highest since February, at

173,725 tonnes, although the latest release from the International

Copper Study Group said the copper market was in deficit by

155,000 tonnes in the first five months of the year.

Rising stocks have pulled down the backwardation -- the

premium for cash material over three-months prices -- to

$27 per tonne. On July 17, the premium hit the year's high,

at $241, with a dominant position capturing most of the market.

The market cast a worried eye over weather forecasts, which

suggested Hurricane Gustav could hit New Orleans, where

some LME warehouses are located.