Base Metals - June 21, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals prices traded mixed on Monday with most of the metals kept muted trading in the morning trade. Base metals traded under pressure on stronger dollar and China crackdown fears. China announced a plan to sell state reserves of copper, aluminium and zinc, in an effort to curb a strong price rally in commodities.

Copper prices witnessed heavy selling in past week reporting the worst weekly fall since March 2020 as China announced to sell its reserves. The market players are cautious after FED's hawkish stance with expectations of unwinding stimulus soon.

We expect base metals to trade sideways to down with MCX Copper June support lies at Rs. 670 and resistance at Rs. 710. MCX Zinc June support lies at Rs. 223, resistance at Rs. 238. MCX Nickel June support lies at Rs. 1240 with resistance at Rs. 1340.

Source : Equity Bulls

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