Base Metals - July 6, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Base metals prices traded mixed with Copper, Nickel and Aluminium prices ended in green while Lead and Zinc prices traded lower for the week. Most of the base metals witnessed buying as reopening of economic activities has lifted some demand for industrial metals.

Nickel prices gained the most during the week with a rally in stainless steel prices in China as many of the producers will shut for the maintenance activity. Copper prices managed to end positive after witnessing some correction from higher levels. Copper prices are trading above $6000 per tonne at LME on supportive economic data from top consumers.

We expect Copper prices to continue to trade higher in the coming week. LME Copper prices have important resistance at $6120 per tonne with support at $5690 per tonne. MCX Copper July futures have near term resistance at Rs. 465 per KG with support at Rs. 456/452 per KG for short term. A sustainable trade above Rs. 465 may lead copper prices towards Rs. 480 levels.

Source : Equity Bulls

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