Buy MCX Copper April on dips near Rs 405-401: Fortune Fin
Fortune Financial Servies has come out with its fundamental report on Copper. According to the research firm, short term traders can buy MCX Copper April contract on dips near Rs 405-401 for target of Rs 412 – 417 with stop below Rs 394. Traders can also consider selling near Rs 417 with stop above Rs 423 for target of Rs 408 and Rs 405.
April 08, 2013 / 13:44 IST
Fortune Financial Servies has come out with its fundamental report on Copper. According to the research firm, short term traders can buy MCX Copper April contract on dips near Rs 405-401 for target of Rs 412 – 417 with stop below Rs 394. Traders can also consider selling near Rs 417 with stop above Rs 423 for target of Rs 408 and Rs 405.
Fundamental Update - Copper prices ended lower last week, as a weaker dollar helped offset pressure from a disappointing U.S. employment report. The U.S. economy added 88,000 jobs in March, well below the 200,000-payroll increase forecast by economists. The data triggered concerns that copper demand in the U.S., the world's second-largest copper market after China, would slacken. But copper prices pared some of these losses as the dollar retreated against a basket of international currencies. Copper is traded in dollars and becomes cheaper for investors who use other currencies when the dollar eases, luring these traders to the market as buyers. Standard Chartered cut its copper price forecast for the year to average around USD 3.4510 from an earlier forecast of USD 3.7738 a pound. The bank said it now expects copper supply to exceed demand in 2013, a shift from an earlier report which called for a shortfall. Copper traders have been growing increasingly concerned about the build-up of excess copper inventory at warehouses overseen by the London Metal Exchange, Europe's main metals trading hub. LME's copper stocks are up 81 percent so far this year to 579,600 metric tons.MCX Copper April contract is trading near short term support of 395 and immediate bounce back is possible towards432 and 449 range if market hold and sustains above 417 ranges, minor resistance is seen near 423, 431.If market breaches critical level of 395 then further down side level of 362 cannot be denied.Immediate trend is range bound between 417 -400 as copper may consolidate in this range for near term.Recommendation – short term traders can buy on dips near Rs 405-401 for target of Rs 412 – 417 with stop below Rs 394. Traders can also consider selling near Rs 417 with stop above Rs 423 for target of Rs 408 and Rs 405.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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