Base Metals - Sep 7, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Base metals prices halted the rally witnessing sell off from the recent highs. LME Copper managed to end in green for the week at $6710 per tonne despite selling in riskier assets. Zinc and Nickel prices pared previous gains on dollar recovery. LME Zinc prices declined on widening contango which signalled supply pressure for the short term.

Copper prices got support from strong fundamentals on improved economic data and lower supplies. The LME Copper prices have sustained above the key resistance above $6645 per tonne on the weekly chart. We expect Copper prices to continue a bullish trend with resistance at $6950 per tonne. At MCX, Copper September contract has important resistance at Rs. 535 and support at Rs. 517 for the coming week.

Source : Equity Bulls

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