Base Metals - May 24, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals prices witnessed decline with most of the metals declined during the week. Nickel prices fell the most losing more than 4% followed by copper and aluminium. Base metals declined on fear of China policy action to curb higher inflation.

China said that it would strengthen its management of commodity supply and demand to curb "unreasonable" increases in prices, and prevent them being passed on to consumers. The ease in US stimulus and warning from China triggered sell off in Copper and other metals form recent highs.

We expect base metals to trade sideways to down with MCX Copper May support lies at Rs. 720 and resistance at Rs. 748. MCX Zinc May support lies at Rs. 223, resistance at Rs. 238. MCX Nickel May support lies at Rs. 1170 with resistance at Rs. 1290.

Source : Equity Bulls

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