AUG 1 FRIDAY

SHORT TERM TREND : TARGET RS 80 TO 83.60

LONG TERM TREND : BEARISH : TARGET RS 64

S1 RS 80.20, S2 RS 78 S3 RS 77

R1 RS 83.60, R2 RS 85.60, R3 RS 87

MARKET IS EXPECTED TO BE SIDEWAYS TO LOWER

PREFER TO BE ON THE SELLING SIDE

Zinx at 2 week high.

A change in china's tax laws for Zinc and

follow through strength from Wednesday are

pushing the Base metal higher on Thursday but

brokers say volatile condition means any gains

may be pared.

Industry participants seized on the long awaited news

that China has cancelled tax rebate on high grade refined

Zinx as an oppurtunity to push prices higher, with

the market jumping 6 % to a 2 week high amid

expectations of a reduced export from China.

But Zinc is already falling as the initial positioning

thins out, with the market erasing its earlier gain.

As of 1050 GMT London Metal Exchange Zinc

was trading at $ 1925 a tonne , 2.9 % up from

Wednesdays close.

With the market apparently extremely short,

this could be the trigger for a sharp move upwards

to $ 2000 a tonne or beyond says UBS A nalyst Mr john

Reade.





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