Base metals bounced in the latter half of the day as the better than expected Durable goods order report triggered fresh buying in them. Weakness in the U. S. dollar against the euro during the day helped a further upside. Though the dollar recovered some ground at close and pared some gains in base metals complex.

LME Zinc, Nickel and Lead futures gained over 5 percent on LME whereas these metals surged by around 3.5-4 percent on MCX.

The Federal Reserve held overnight interest rates in a zero to 0.25 percent range -- the level reached in December -- and said the U. S. economic recession was easing.

Stocks of copper in LME warehouses are at seven-month lows around 275,000 tonnes compared with levels around 500,000 tonnes earlier this year. Much of the difference has made its way to Chinese state reserves and consumer stockpiles.

Durable Goods order report showed an increment of 1.8 percent for the month of May which turned out to be better than expected figure of -0.60 percent.

Base metals went up last day due to better than expected durable goods order report. We expect base metals to trade sideways to down for the day as demand concerns might weigh on base metals complex.