Base Metals - May 17, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals complex traded lower with most of the metals witnessed selling form recent highs. Copper prices capped down side on supply concerns from Chile. Base metals pared gains on demand growth concerns after China signalled to take action to curb rising inflation.

Copper prices may resume uptrend over supply disruption fears from Chile. Workers at BHP Group's remote operations center in Santiago rejected the company's final wage offer, with almost 97% of the union's members opting to strike. The miner now has the right to call for government mediation that could last as long as 10 days.

We expect base metals to trade sideways to up with MCX Copper May futures have near term resistance at Rs. 810 and support at Rs. 760 for short term. Aluminium resistance lies at Rs. 205 and support at Rs. 190. MCX Nickel may keep firm trading range with resistance at Rs. 1360 and support at Rs. 1260.

Source : Equity Bulls

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