Base Metals - March 8, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals prices ended lower with most of the metals witnessed selloff during the week passed by. Nickel prices plunged by nearly 12% reporting worst week since 2011. Copper prices at LME fell by 2% followed by lead and Zinc. LME Aluminium was the exception with 1% gain for the week.

Nickel prices witnessed sell off after China's Tsingshan Holding Group said it would supply 100,000 tonnes of nickel matte - an intermediate product that can be used to make battery-grade nickel for electric vehicles - to two other Chinese firms within a year from October.

Copper prices are expected to limit downside with broad bullish fundamentals on lower supply fears. We expect base metals to trade sideways to down with Copper support at Rs. 670 and resistance at Rs. 705. Nickel support lies at Rs. 1140 and resistance at Rs. 1230.

Source : Equity Bulls

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