Feb 27, 2013 12:31 PM IST | Source:

MCX Copper Apr Fut has support at Rs 420-418: GEPL Capital

GEPL Capital has come out with its report on base metal, bullion and Crude Oil. The research firm says intraday trend for MCX Copper February Future is bullish, it has support at Rs 420-418 and resistance is at Rs 427-430.

GEPL Capital has come out with its report on base metal, bullion and Crude Oil. The research firm says intraday trend for MCX Copper February Future is bullish, it has support at Rs 420-418 and resistance is at Rs 427-430.

Base metals-

Copper edged up on Tuesday as upbeat U.S. housing and consumer confidence data offset worries about a deadlocked Italian vote, and as investors were relieved to hear the Federal Reserve defend its ultra-loose monetary policy. Federal Reserve Chairman Ben Bernanke's congressional testimony earlier strongly defended the U.S. central bank's bond-buying stimulus, and also urged lawmakers to avoid sharp spending cuts set for Friday. Meanwhile, U.S. data showed new home sales jumped to 4-1/2 year highs in January while home prices in December rose a more than expected 0.9 percent in December.

Data also showed consumer confidence rebounded strongly in February. Limiting gains in copper, however, was concern about an escalation of the euro zone's debt crisis following the deadlocked Italian election result, as well as weak demand from China, which consumes some 40 percent of the world's copper. Demand from China has remained subdued following the Lunar New year holiday, disappointing investors who had banked on quick buying from the world's top copper consumer on its return to the market.


Gold rose 1.3 percent on Tuesday, its biggest one-day gain in three months, as Federal Reserve Chairman Ben Bernanke's defense of U.S. bond-buying stimulus boosted bullion's inflation-hedge appeal. The metal broke above $1,600 an ounce, extending its rally to a fourth straight day, after Bernanke said Fed policymakers are cognizant of potential risks from its loose monetary policy, but the risks did not seem material now. In his testimony on the central bank's semiannual report on monetary policy, Bernanke said the Fed has all the tools it needs to retreat from its monetary support in a timely fashion.

The market largely ignored a cut of more than $200 in the gold price outlook by Goldman Sachs, one of the top global bullion banks. It reduced its 2013 gold price forecast to $1,600 an ounce from $1,810, citing bullion's recent price drop and an increase in U.S. real interest rates. If that projection proves accurate, it will mark the first year gold has recorded a lower average price year-on-year since 2001, when its record-breaking 12-year bull run began.


Crude-oil The price of oil was lower Tuesday as investors weighed the implications of political uncertainty in Italy, the latest assessment of the economy from the head of the Federal Reserve and prospects for growing US crude supplies. Stock and commodities markets were initially rattled by the possibility of political paralysis in Italy after nearly complete results in crucial national elections showed no clear front-runner. Investors worried that the uncertainty could intensify Europe's debt crisis. Benchmark U.S. crude cut some of its early losses after economic data released Tuesday showed further improvement in sales of new homes and housing prices, as well as an increase in consumer confidence. U.S. stock indexes rose, reversing a sharp decline on Monday.

In data due today, the U.S. Energy Information Administration is expected to show crude-oil stockpiles rose 2.5 million barrels last week, according to a preliminary survey of analysts conducted by Dow Jones Newswires. Inventories are already at their highest level for this time of year based on EIA data beginning in 1982. The American Petroleum Institute, an industry group, said in its own report late Tuesday oil stockpiles rose by 904,000 barrels. Gasoline stockpiles fell by 1.444 million barrels and stocks of distillate fell by 1.743 million barrels.

Trading strategy:

MCX Copper (Feb Fut): Intraday trend is bullish; it has support at Rs 420-418 and resistance at Rs 427-430.

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