Base Metals - July 12, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals prices traded higher during the week passed by with most of the metals kept firm trading range limiting downside. Base metals prices recovered from recent lows on easing concerns of China policy tightening and recent rate cut from China central bank. The PBOC said, effective July 15, that reserve requirement ratio, or RRR, would be lowered by a half point, to a weighted average of 8.9%. Copper prices rose the most in six week on higher demand outlook and loosen lending rates form China. Copper inventories fell by 13051 tonnes in last week.

We expect base metals to trade sideways to up with MCX Copper July support lies at Rs. 717 and resistance at Rs. 742. MCX Zinc July support lies at Rs. 236, resistance at Rs. 245. MCX Nickel July support lies at Rs. 1360 with resistance at Rs. 1450.

Source : Equity Bulls

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