Base Metals - June 15, 2020 - Mr. Tapan Patel- Senior Analyst (Commodities), HDFC securities

Base metals prices weakened on the start of the with Copper and Nickel prices fell by nearly 1% while Zinc, Lead and Aluminium prices traded with half a percent losses. Base metals prices traded down on Monday on weak global cues as rise in cases Beijing and Tokyo raised demand growth concerns for Industrial metals.

The weak data from China on Monday pressured base metals to trade down along with other riskier assets. China's Industrial production for the month of May rose by 4.4% missing the forecast of 5%. The retail sales fell by 2.8% against the forecast of decline of 2.3%.

The reopening of economic activities has raised demand growth prospects in base metals forming the temporary bottom for the prices.

MCX Copper June contract has given breakout above Rs. 425 and currently trading Rs.437. We expect base metals to trade sideways to down with MCX Copper June support at Rs. 430, Resistance at Rs. 446.

Source : Equity Bulls

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