Copper prices eased to Rs 711.15 per kg on April 16 as participants increased their short positions as shown by open interest. The base metal traded in the negative territory after a gap-down start in the evening session, tracking subdued global cues.
The non-ferrous metal has been trading higher than 5, 20, 50, 100 and 200 days’ moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 64.85, which indicates positive movement in prices.
Copper prices were under pressure tracking a sustained rise in LME copper inventories which hit their highest level since November 5 at 172,025 tonnes.
Neha Qureshi, Technical Analyst at Reliance Securities said, “LME Copper has given a breakout of Symmetrical Triangle formation where it’s heading towards 52-week high of $ 9,615.50 levels, indicating bullish momentum in the counter. Support is at $ 9,270-$ 9,190 levels. Resistance is at $ 9,348-$ 9,400 levels.
MCX Copper April has given a breakout of its range-bound movement where it is moving towards its all-time high level of Rs 737 level indicating a strong uptrend in the counter. Support is at Rs 713 – Rs 709 levels. Resistance is at Rs 718 – Rs 721 levels. Quereshi advised her clients to buy Copper April at Rs 716 with a stop loss of Rs 713 and a target of Rs 722.
The US dollar traded marginally lower at 91.60, down 0.02 percent in the evening session against the rival currencies.
MCX METLDEX decreased 80 points, or 0.55 percent, to 14,510 at 19:30. 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 719.15 and a low of Rs 711.10 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 by Rs 8, or 1.11 percent, to Rs 711.15 per kg at 19:31 hours with a business turnover of 3,167 lots. The same for May contract edged lower by Rs 7.35, or 1.02 percent to Rs 712.50 per kg with a turnover of 763 lots.
The value of April and May’s contracts traded so far is Rs 1,777.50 crore and Rs 111.07 crore, respectively.
MCX Copper is likely to trade with positive bias for the session with support placed at Rs 714-Rs 710 whereas resistance is seen at Rs 720 – Rs 724, said Motilal Oswal Financial Services (MOFSL). The brokerage firm advised its clients to buy on dip for the short term.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Copper has marginally declined after rising 2% in the previous session. Prices breached the resistance of Rs 694-Rs 697 levels and have been on a rising spree since then. The market is sustaining above Rs 710 levels and may continue to do so in the upcoming session as well.”
At 14:05 (GMT), the red metal price was down 0.94 percent and was quoting at $ 9,223 per tonne in London.
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