Base metals traded mixed during the week with most of the metals traded under pressure on broad selling in industrial metals in China, according to Tapan Patel, Senior Analyst (Commodities), HDFC securities in a weekly brief with Davis Index.
Base metals witnessed selling with the US inflation concerns and weak demand from Europe over pandemic worries. The higher US bond yields and stronger dollar pressured base metals to trade weak.
Base metals may gain support form overall supply deficit concerns with lower inventories. Nickel inventories are down by 16.2pc at SHFE, fell by 2040mt in the prior week. Copper stockpiles rose by 15,578mt on curtailed demand from China.
We expect base metals to trade sideways to down for the week with MCX Copper support at Rs665 and resistance at Rs689. MCX Nickel support lies at Rs1,140 and resistance at Rs1,190 for short term. Zinc and Aluminium may limit downside with support at Rs215 and Rs172 respectively.