Copper prices were under mild pressure due to profit booking as commodities turned choppy along with equities and US dollar while market players countered central bank stance against emerging signs of inflation.
The base metal traded in the negative territory after starting in the red on subdued global cues.
Copper delivery for May slipped Rs 4.15, or 0.53 percent, to Rs 775.45 per kg at 19:13 hours with a business turnover of 4,054 lots. The same for June contract eased Rs 4.20, or 0.53 percent to Rs 779.30 per kg with a turnover of 903 lots.
The value of May and June’s contracts traded so far is Rs 3,405.39 crore and Rs 133.84 crore, respectively.
MCX METLDEX was 13 points, or 0.09 percent, at 15,228 at 19:15. The index tracks the real-time performance of key base metals.
“Copper prices fell on Friday, with the London contract set for its first weekly decline in more than a month, on worries of tightening credit that could potentially cap demand for the metal. Softer credit growth in China is seen as a sign of peaking demand. China’s government saying they will deal with price surge doesn’t bode well,” said Motilal Oswal.
Chinese banks extended 1.47 trillion Yuan ($ 228.21 billion) in new Yuan loans in April, down from 2.73 trillion Yuan in March and lagging analysts’ expectations of 1.6 trillion Yuan.
The US dollar dropped 0.47 percent to 90.30 in the evening session against the rival currencies.
Technicals
The non-ferrous metal has been trading higher than 20, 50, 100 and 200 days’ moving averages but lower than the 5-day moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 65.32, which indicates positive movement in prices.
At 13:54 (GMT), the red metal price rose 0.37 percent to quote at $ 10,329.75 per tonne in London.
Trading Ideas
Geojit Financial Services
Copper weakness may stretch lower if prices stay below Rs 780 region. By breaking the same could cajole fresh buying and such move may test recent higher levels.
Motilal Oswal
MCX Copper is expected to trade in a bullish trend with support at Rs 768.50 level and intermediate support at Rs 771.50 level. The brokerage firm advised its clients to buy on dips targeting higher resistance at Rs 778-782.50 zone.
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