Base Metals - Commodity Snippet - Dec 11, 2020 - Reliance Securities

LME copper prices ended higher on Thursday. Rest of the metals also ended with gains on Thursday amid optimism surrounding the vaccine developments.

Nickel rose more than 4% on Thursday as resurgent demand from Chinese steel mills and a rapid rally in iron ore futures fuelled a rush of speculative buying.

Nickel stocks held in warehouses monitored by the Shanghai Futures Exchange have fallen to 18,361 tonnes, the lowest since mid-2019. However, inventories in LME-registered warehouses at 243,426 tonnes are the highest since mid-2018.

However, upside was capped after Chilean state miner Codelco said it had reached an early contract agreement with a union at its Radomiro Tomic mine.

Copper and other metals on MCX ended higher on Thursday tracking the firm international markets.

International and Domestic Outlook

Copper on the LME has started higher this Friday morning in Asian trade amid speculative buying from China.

Rest of the base metals also started higher this Friday morning in Asian trade.

Technically, LME Copper hit 52 week new high at $7924.75 levels where it will continue its bullish momentum up to $8005-$8070 levels. Support is at $7890-$7830 levels.

Domestic copper could open with a gap up trade this Friday morning, tracking a positive start in the overseas prices.

Technically, MCX Copper December made an all-time high levels at 607.85 level it has enter to uncharted territory where prices have shifted to new zone range above 600 levels indicating a bullish momentum up to 608-612 levels. Below 603 could see some sideways momentum in the range of 598-604 levels.

MCXMETLDEX yesterday gave a breakout above 13600 levels indicating further upside movement where 13740-13840 levels could be a resistance & support is at 13520-13370 levels.

Source : Equity Bulls

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