Copper prices edged over 2 percent lower to Rs 681.90 per kg on March 9. Industrial metals were under pressure in today’s session, but investors remained optimistic about metal consumption.
Copper extended decline after a flat to gap-up start in the evening session tracking muted global cues.
The base metal has been trading higher than 50, 100 and 200 days' moving averages but lower than 20 and 5 days’ moving average on the daily chart. The Relative Strength Index (RSI) is at 53.29 which indicates neutral momentum in prices.
The downside in the metal may be capped amid signs of tightness in the physical market and a jump in China’s copper imports.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research said, “MCX Copper is moving in a bearish trend since morning. Price fell by roughly 2% since the morning’s opening, we may expect prices to test support level in the range of Rs 679.80-678.20, on the upper-level prices may get challenged in the range of Rs 686.20-688.90, the mentioned level may be breached with the help of heavy volumes in the evening session."
The US dollar traded lower at 92.09 or down 0.26 percent in the evening session.
MCX METLDEX was down 300 points, or 2.12 percent, at 13,830 at 18:23. The index tracks the realtime performance of key base metals.
In the futures market, copper for March delivery touched an intraday high of Rs 697.90 and a low of Rs 678.25 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 585.70 and a high of Rs 737.
Copper delivery for March slipped Rs 14.15, or 2.03 percent, to Rs 681.90 per kg at 18:25 hours with a business turnover of 3,731 lots. The same for April contract fell Rs 14.10, or 2.02 percent to Rs 683.10 per kg with a turnover of 659 lots.
The value of March and April’s contracts traded so far is Rs 2,110.16 crore and Rs 72.05 crore, respectively.
Neha Qureshi, Technical Research Analyst at Reliance Securities said, “LME Copper holds support of 21-Daily Moving Average which is placed at $8,813 level indicating downside pressure below it up to $8,670-$8,600 levels. Resistance is at $8,930-$9,040 levels.”
MCX Copper March could see some sideways momentum near its 21-Daily Moving Average at Rs 678 level below which could see a downside move up to Rs 673-665 levels whereas resistance is at Rs 683-688 levels. She advised her clients to sell March Copper at Rs 685-685.40 with a stop loss of Rs 688 and for a target of Rs 678.
At 1258 (GMT), the red metal price declined 1.33 percent, quoting at $8,888.75 per tonne in London.
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