Base metals slipped as participants took their cue from slipping equity markets and grabbed profits from recent gains.

Copper, Zinc and Nickel ended the session marginally lower on MCX.

On LME, Zinc's last bid at $1,542 a tonne was off $1,555 at the previous close, and battery material lead's last bid fell to $1,426 from $1,465. Tin traded at $13,900 a tonne, down from $13,995. Nickel closed lower at $12,925 from $13,100.

Copper prices fell on Monday as participants took their cue from slipping equity markets and grabbed profits from recent gains amid fears Chinese demand was subsiding at the onset of a traditionally quiet market season.

U. S. share prices fell on news that several major banks would offer common stock to repay government bailout funds and when some equity investors took profits after a two month rise. Data evidence points out that there is a 86 percent correlation between copper prices and equities since the beginning of March.

Prices of the red metal used in power and construction have nearly doubled year-to-date as a drop in LME stocks and a rise in material tagged for delivery have pointed to strong buying from China, the world's biggest copper consumer. China's imports of unwrought copper and semi-finished copper products rose 6.6 percent on the month in April to 399,833 tonnes, China's customs authority said on Tuesday.

Among other industrial metals aluminum was last bid at $1,539 from $1,540. Aluminum inventories struck yet another record high, up by 4,950 tonnes to 3.86 million tonnes. Adding to aluminum's weak demand outlook were remarks by General Motors chief executive that it was "more probable" the automaker would need to file for bankruptcy protection.

It seems base metals are stuck in the narrow range; jump in Chinese imports of Copper and other metals may limit the downside during the day.

Copper prices yesterday dropped below the Middle line of Bollinger Band, and are now taking the support at 226 levels. Copper prices can revive back to 233-35 levels, if it maintains above 226 levels. Copper can move downside to 221-22 levels if breached
226.

Nickel Prices are taking resistance at higher levels. However a DOJI formation at the top is not a very positive sign. Thus one should hold for new buying in Nickel at the current levels.