Base metals zoomed up with declining dollar amid decreasing stocks supported prices very well. LME Metal counter witnessed almost two percent gain with copper crossing above $7800 level, while zinc and lead traded above $2200.
Copper climbed to a five-month high driven by a weak dollar and demand optimism after the U.S. Federal Reserve said it was ready to implement new measures to spur the economy. Stockpiles of metal on LME headed for a 31st weekly drop in a row, signaling steady demand. LME copper inventories declined to near the lowest level since November and cash metal's discount to the three-month contract shrank yesterday.
Today, US home sales and jobless figures will be released, which is expected to come with positive bias which is likely to be bullish for base metals.
Copper has resistance of $7900 at LME and `362 in MCX with support lies at 358. And Zinc has support of 99 and resistance of 101. Nickel getting support at 1035 and resistance near 1045. Lead has support at 100 & resistance at 101.5.
