Base Metals - May 18, 2020 - HDFC Securities

Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Base metals complex traded string on Monday with Copper and Nickel led the recovery by gaining nearly 1.50% by noon session. Zinc , lead and Aluminium remained the laggards in today's recovery as gains were capped to below 1%.

Base metals pared some weekly losses on Monday on signs of demand recovery on positive data from China. China's new home prices gained by 0.42% in April against 0.13% rose in March. The Friday's strong Industrial output number also supported the recovery in base metals.

However, on demand front, the lace is still slow with rise in inventory numbers. The renowned tensions between US and China has raised concerns over demand growth in metals. In recent move, US has banned the supply of microchips to Huawei which may draw retaliation from China.

MCX Copper May contract has important resistance at Rs. 411 and 415 with strong support at Rs. 401 for short term.

Source : Equity Bulls

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