Base Metals - Aug 23, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals prices traded lower for the week with most of the metals witnessed decline with Nickel and Copper falling the most. Base metals traded under pressure on demand growth worries as rising virus cases in China and other parts of the world has led to COVID restrictions. Base metals also added pressure on stronger dollar over Fed tapering concerns. Copper prices fell nearly 5% after China imposed COVID restrictions shutting some of the ports. The fast spreading coronavirus delta variant has also hurt sentiment, with recent weaker-than-expected data in the U.S. and China suggesting the global economic recovery is stalling.

We expect base metals to trade sideways to down with MCX Copper Aug support lies at Rs. 690 and resistance at Rs. 712. MCX Zinc Aug support lies at Rs. 242, resistance at Rs. 252. MCX Nickel Aug support lies at Rs. 1410 with resistance at Rs. 1470.

Source : Equity Bulls

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