Base Metals - Sep 14, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Base metals complex traded firm on Monday on positive global cue on weaker dollar and strong equity indices over vaccine hopes. Earlier, prices were trading under pressure as stronger dollar, US-China tensions and BREXIT uncertainty weigh on industrial metals.

Copper prices continued bullish stance on decline in LME inventories and higher demand prospects on China credit growth. Copper premium at Shanghai fell to $62 per tonne to the lowest since March which signalled a tight spot market.

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. 515 for the coming week. MCX Nickel and Zinc prices may get some support at Rs. 1080 and Rs. 189 respectively.

Source : Equity Bulls

Keywords