Base Metals - June 1, 2020 - HDFC Securities

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

Base metals prices traded higher on Monday continuing the positive trade. Copper , Nickel and Zinc prices managed to end in green for the second consecutive week keeping the narrow trading range.

Base metals gained on positive investment sentiments with strong equity indices with ease of lockdown measures from several countries.

The escalation in tensions between US and China has kept upside limited in base metals over demand growth concerns. The US President Donald Trump on Friday said to eliminate special treatment for Hong Kong after China approved New National Security Law for Hong Kong and Macau. Base metals traded higher along with equity indices as US President Donald Trump did not touch upon the Phase one deal with China.

The convincing manufacturing PMI numbers from China may support base metals to trade higher in coming with after China Caixin Manufacturing PMI came at 50.7 for May 2020.

MCX Copper June contract has important resistance at Rs. 425 with strong support at Rs. 412 for short term.

Source : Equity Bulls

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