Base Metals - Aug 2, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals prices traded higher with most of the metals witnessed strong buying from recent lows during the week. Base metals price were supported by weaker dollar post US FOMC meeting and lower supply concerns from China and Chile. Aluminium prices at Shanghai rose to Copper prices at Shanghai fell to three year highs on power cuts in the key metal-producing province of Yunnan. Copper prices rallied on strong demand outlook in the second half of the year with lower inventory levels and looming strike concerns on Chile.

We expect base metals to trade sideways to up with MCX Copper August support lies at Rs. 740 and resistance at Rs. 768. MCX Zinc Aug support lies at Rs. 240, resistance at Rs. 254. MCX Nickel Aug support lies at Rs. 1420 with resistance at Rs. 1560.

Source : Equity Bulls

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