Base Metals - May 26, 2020 - HDFC Securities

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

Base metals prices traded higher on Tuesday witnessing buying from previous week on improved demand outlook. Metals prices continued upside with Nickel and Zinc led the gains followed by lead and Copper.

Base metals gained on positive investment sentiments with strong equity indices on vaccine hopes. Base metals also get boost after Japan lifted the states of emergency including Tokyo.

However, The renowned tensions between US and China has raised concerns over demand growth in metals. The rising protest in Hong Kong over New Security Law and US banning Chinese entities are still the down side risk for base metals.

MCX Copper June contract has important resistance at Rs. 420 with strong support at Rs. 411 for short term.

Source : Equity Bulls

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