Base Metals - July 5, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals prices traded firm with most of the metals witnessed buying from lower levels on falling inventories and supply concerns along with steady demand. Lead prices gained the most followed by Aluminium while Copper prices ended marginal down weighing China demand.

Aluminium prices gained on lower supply concerns with Russia set to raise taxes. China is selling copper, aluminium and zinc from its state reserves via public bidding on Monday and Tuesday in an effort to rein in surging raw material costs and prevent inflationary pressures from derailing the economic recovery. The lower inventory at SHFE has supported base metals to limit downside.

We expect base metals to trade sideways to up with MCX Copper July support lies at Rs. 717 and resistance at Rs. 740. MCX Zinc July support lies at Rs. 235, resistance at Rs. 245. MCX Nickel June support lies at Rs. 1310 with resistance at Rs. 1450.

Source : Equity Bulls

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