Copper prices eased to Rs 692.30 per kg on April 9 as participants increased their short positions as seen by the open interest. The base metal traded in the red in the evening session after a gap down start tracking weak global cues and a stronger dollar.
The non-ferrous metal has been trading higher than 5, 20, 50, 100 and 200 days’ moving averages on the daily chart. The Relative Strength Index (RSI) is at 60.01 which indicates positive momentum in prices.
Copper prices fell on Friday, cutting gains for the week as rising inflation in top consumer China stoked worries that world’s second-largest economy could tighten monetary policy.
Despite data showing signs that economic recovery in China is gathering momentum, investors were concerned that the country’s central bank will tighten monetary policy, dampening money supply into financial markets.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Copper April is trading with marginal sideways and negative bias and prices are sustaining above 50-SMA and resisting below Rs 696-694. If these levels are breached with adequate volume, we may expect the market to trade near psychological levels of Rs 700 in the upcoming sessions.”
The US dollar trade firm at 92.23, up 0.18 percent in the evening session against the rival currencies.
MCX METLDEX dropped 101 points, or 0.70 percent, at 14,430 at 19:53. The index tracks the real-time performance of key base metals.
In the futures market, copper for April delivery touched an intraday high of Rs 695.35 and a low of Rs 691.55 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 657.85 and a high of Rs 732.70.
Copper delivery for April slipped Rs 3.30, or 0.50 percent, to Rs 692.30 per kg at 19:55 hours with a business turnover of 3,168 lots. The same for May contract slides Rs 3.25, or 0.47 percent to Rs 693.10 per kg with a turnover of 297 lots.
The value of April and May’s contracts traded so far is Rs 1,078.85 crore and Rs 24.83 crore, respectively.
MCX Copper is likely to trade with positive bias for the session with supports placed at Rs 691-687 whereas resistance is at Rs 699-703, said Motilal Oswal. The brokerage firm advised its clients to buy near support for the day.
Neha Qureshi, Technical Research Analyst at Reliance Securities said, “LME Copper could see a bullish momentum above $ 8,960 level where it could further see $ 9,020-$ 9,075 levels. Support is at $ 8,955-$ 8,920 levels.”
MCX Copper April could see a bullish momentum up to 697-701 levels. Support is at 692-689 levels. Quereshi advised her clients buy Copper April Rs 694 with a stop loss of Rs 691 and a target of Rs 701.
At 1429 (GMT), the red metal price was down 0.81 percent, quoting at $ 8,934.75 per tonne in London.
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