Base Metals - Sep 21, 2020 Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Base metals prices witnessed buying during the week with Zinc, Copper and Lead gained the most while Nickel prices traded lower remaining the exception. Base metals gained in two trading sessions of the week on US vaccine hopes and dollar decline while demand growth optimism from China capped downside.

Copper prices continued bullish stance with prices rose to the two years high on strong demand from China despite of rise in weekly inventories at SHFE and LME. However, Copper inventories at LME are still 70% down from the May 2020 peak levels. THE CFTC data showed that net long positions at COMEX Copper rose by 7510 lots to 2 year high signalling high investment appetite. LME Copper prices have sustained above the key resistance above $6750 per tonne. We expect Copper prices to continue bullish trend with resistance at $6950/7510 per tonne. At MCX, Copper September contract has important resistance at Rs. 540/546 and support at Rs. 528 for the coming week.

Source : Equity Bulls

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