SEPT 2 TUESDAY

SHORT TERM TREND : SIDEWAYS

LONG TERM TREND : BEARISH

S1 RS 78 , S2 RS 76.30

R1 RS 80.60 , R2 RS 82.30

SELL AT RS 79.40 TO 79.50

STOP LOSS RS 80.70

TARGET RS 77

Zinc eased but Hurricane Gustav was seen as a potential

threat to LME warehouses, analysts said.

The stronger dollar is pulling commodities lower.

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

Zinc has risen more than 10 percent since dipping to a 33-

month low in mid-August, but the metal mainly used to

galvanize steel is down by about 25 percent this year.

With almost 40 percent, or 61,000 tonnes, of world LME

zinc stocks in New Orleans, some traders feared a repeat of

Hurricane Katrina in September 2005, which cut off access

to about one-half of the available LME stock of zinc for months.

This location could trigger some short-covering if the LME

warehouses are flooded.

When Katrina struck, LME zinc was trading between $1,300 and

$1,400 a tonne. It doubled in price by May 2006.

Zinc was last quoted at $1,775/1,780 a tonne from $1,811 a tonne.