Base Metals - April 19, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals complex traded higher with most of the metals traded firm on higher demand optimism. Base metals are trading higher with round of positive economic data from US and China which has boosted demand outlook for industrial metals. The lower supply concerns from China has spurred buying in Aluminium and Zinc. Copper prices extended gains by more than 2% on weaker dollar and higher demand from green technologies.

Copper inventories at Shanghai rose to 11 month highs gaining 8896 tonnes in last week. Aluminium stockpiles fell by 7050 tonnes in China dues to lower supply over China's curb on carbon emission.

We expect base metals to trade up with MCX Copper April support lies at Rs. 720 and resistance at Rs. 735. MCX Zinc April support lies at Rs. 229, resistance at Rs. 234. MCX Nickel April support lies at Rs. 1190 with resistance at Rs. 1260.

Source : Equity Bulls

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