Base Metals - June 8, 2020 - HDFC Securities

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

Base metals prices ended positive for the third consecutive week with Copper, Nickel and Lead prices gained the most followed by Zinc and Aluminium.

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

The US Labour department data showed that total non farm payroll rose by 2.5 million against the expectations of decrease of 8 million. The US unemployment rate for May was at 13.3%.

The reopening of economic activities has raised demand growth prospects in base metals supported by recent economic data from China and US.

MCX Copper June contract has given breakout above Rs. 425 and currently trading Rs.433. We expect base metals to trade higher in short term with MCX Copper June support at Rs. 425, Resistance at Rs. 442.

Source : Equity Bulls

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