Base metals - Oct 12, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Base metals complex traded higher with most of the metals witnessed strong recovery from recent lows. Nickel, Zinc and Aluminium gained the most amongst the complex followed by Copper and Lead.

The strong demand prospectus from China over better than expected economic data boosted buying in base metals. Copper prices rose on supply concerns from top mining nations Chile over labour strike.

The CFTC data showed that money managers have cut their net long positions to four week low by 6930 lots in last week.

We expect base metals to trade in upper range with Copper support at $6450 and resistance at $6900. MCX Copper October resistance at Rs. 535 per KG with support at Rs. 517 per KG for short term.

Source : Equity Bulls

Keywords