Base Metals - Nov 9, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Base metals prices traded strong on Monday on demand growth prospects on corona package hopes with the win of Joe Biden as US President. The strong equity indices and weaker dollar supported base metals to trade higher for the day. Nickel and Zinc prices lead the gains in base metals in the morning trade followed by copper. Copper prices traded strong on lower supply concerns from top mining nation Chile after failed wage negotiations.

We expect base metals to trade higher on positive global cues with MCX Copper November support lies at Rs. 530 and resistance at Rs. 545 for coming week. MCX Nickel November prices support lies at Rs. 1140, resistance at Rs. 1210 while MCX Zinc has important resistance at Rs. 218 for short term.