Base Metals - June 14, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals prices traded higher with most of the metals rallied on strong demand prospectus. The higher demand from China and opening of economic activities in US and Europe has lifted demand outlook for industrial metals. The fear of unwinding of stimulus measures and inflation concerns have capped upside during the week.

Copper prices rose on higher demand with strong US data while weak data from China kept traders anxious with inflation worries. Vehicle sales in China fell 3% in May from the same month a year earlier. The fall in weekly inventories also supported base metals especially Aluminium and Zinc.

We expect base metals to trade sideways to up with MCX Copper June support lies at Rs. 738 and resistance at Rs. 754. MCX Zinc June support lies at Rs. 234, resistance at Rs. 248. MCX Nickel June support lies at Rs. 1260 with resistance at Rs. 1390.

Source : Equity Bulls

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