Base Metals - Aug 30, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals prices traded higher with most of the metals recovered from recent lows on higher demand prospectus and weaker dollar. Base metals were supported by easing worries form China after it succeeded to curb fresh COVID outbreak. Base metals gained after shipping ports reopened resuming the supply chain to key trade routes. Copper prices were supported by lower inventories and labour strike concerns at key producing region at Chile. Copper inventories at China fell by 8500 tonnes providing key support to the prices. Aluminium prices rallied to the highest since 2008 on tougher output curbs on polluting industries.

We expect base metals to trade sideways to up with MCX Copper September support lies at Rs. 710 and resistance at Rs. 738. MCX Zinc Sept support lies at Rs. 241, resistance at Rs. 250. MCX Aluminium Sept support lies at Rs. 208 with resistance at Rs. 218.

Source : Equity Bulls

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