Base Metals - July 27, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities
(Time Zone: Arizona, USA)
Base metals complex traded higher with Nickel, Aluminium and Zinc rose the most while Copper prices ended marginal down for the week.
Nickel prices at LME rose by more than 3% on demand recovery hopes after Goldman Sachs raised its prices outlook after Tesla Inc founder Elon Musk promised a giant long term contract with nickel mining companies.
Copper prices traded under pressure on demand growth concerns amid political tensions between US and China. The rise in geopolitical tensions may impact future trade pacts. Copper inventories at SHFE fell by 963 to 157684 tonnes during the week. LME Copper prices have touched strong resistance near $6645 at 76.4% retracement levels of previous fall.
We expect Copper prices to trade in current range with support at $6240 per tonne. MCX Copper August futures have near term resistance at Rs. 512 per KG with support at Rs. 490 per KG for short term. MCX Nickel has important resistance at Rs. 1060 and support at Rs. 1020 in short term.