Base Metals - June 7, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals prices traded weak on Monday with most of the metals continued down side in the morning trade. Base metals traded under pressure on stronger dollar and weak demand outlook form China while lesser than expected US payroll numbers also added pressure. The fear of unwinding of stimulus measures and inflation concerns have pushed base metals prices lower.

Copper prices at Shanghai fell to six week lows on expectations of US policy actions. The US treasury secretary Jennet Yellen pushed for US President's $4 trillion spending plan with some spike in inflation and interest rates.

We expect base metals to trade sideways to down with MCX Copper June support lies at Rs. 725 and resistance at Rs. 754. MCX Zinc June support lies at Rs. 228, resistance at Rs. 243. MCX Nickel June support lies at Rs. 1240 with resistance at Rs. 1360.

Source : Equity Bulls

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