Base Metals - Aug 9, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Base metals complex traded lower for the week passed by with Aluminium being exception to end in green. Base metals traded under pressure on stronger dollar and COVID worries raising demand concerns. Aluminium is on course for a third straight weekly advance output disruptions in China and Canada continued to help tighten the aluminium market, with Chinese smelters cutting output as power is rationed in southern provinces. Copper pared early gains after a strong U.S. jobs report fuelled expectations that the Federal Reserve may start paring back monetary stimulus soon. The main union at Chile's Escondida is calling on workers to be ready to strike amid limited progress in mediated talks.

We expect base metals to trade sideways to down with MCX Copper August support lies at Rs. 720 and resistance at Rs. 738. MCX Aluminium August support lies at Rs. 201, resistance at Rs. 210. MCX Nickel August support lies at Rs. 1380 with resistance at Rs. 1490.

Source : Equity Bulls

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