Base Metals - July 13, 2020 - Mr. Tapan Patel - Senior Analyst - Commodities, HDFC securities

Base metals complex witnessed sharp buying with Zinc and Copper prices rallied the most buoyed by improved demand outlook and fear of supply disruption.

Copper prices extended rally on fear of supply disruption from top producing nations Peru and Chile. The Chilean copper workers at an Antofagasta Plc copper mine rejected a final wage offer which added supply concerns. Copper inventories at SHFE rose by 14347 tonnes during the week.

We expect Copper prices to continue upside with LME Copper prices have important resistance at $6640 per tonne with support at $6240 per tonne. MCX Copper July futures have near term resistance at Rs. 512 per KG with support at Rs. 490 per KG for short term.

Source : Equity Bulls

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