DEC 19 FRIDAY

FUNDAMENTAL SCENARIO

Copper prices continued to nose dive on Thursday ,

dropping to their lowest levels in four years

as grim demand prospects for industrial metals

stemming from a glaobal slow down continued to drive

bearish sentiment.

A sharply weaker reading in German corporate sentiment

in December coupled with lower seasonally adjusted october

imports and exports in the Euro zone .

Copper can go a fair bit lower as the weaker demand

environment and high inventory weigh on prices.

Weak data continue to worry the market.

There is fear that this could lead be a serious

down tern and meatal demand will remain weak for

many months.

Copper for Feb delivery under the MCX might see

support at Rs 136 levels while the resistence might

be seen at Rs 146 levels.

OUTLOOK

Copper might continue to trade lower as the economic

picture looms large over the industrial and construction

development.

There is no doubt that the outlook for the metals demand

over the next few quarters is grim.

Copper is the maetal that has the furthest downside

potential from the current levels.