Copper prices fell slightly to Rs 673.95 per kg on March 22 as participants increased their short positions as seen by the open interest. The base metal traded in negative territory after a gap down open, tracking muted global cues.
The red metal had declined by Rs 4.30 or 0.63 percent last week on the MCX.
The non-ferrous metal has been trading higher than 5, 50, 100 and 200 days' moving averages but lower than the 20-day moving average on the daily chart. The Relative Strength Index (RSI) is at 50.75 which indicates sideways momentum in prices.
“Base metals traded mixed during the week with most of the metals being under pressure on broad selling in industrial metals in China. Base metals witnessed selling with US inflation concerns and weak demand from Europe over pandemic worries. The higher US bond yields and stronger dollar pressured base metals to trade weak”, said Tapan Patel- Senior Analyst (Commodities), HDFC Securities.
Copper prices were pressured by an increase in stocks at ShFE accredited warehouses to the highest since September at 187,372 tonnes by the end of last week.
Speculators cut their net long US copper positions by 6,651 contracts to 44,570 in the week to March 16, according to US CFTC data.
“LME Copper is sustaining above 21-Daily Moving Average which is placed at $9,079 levels indicating for a bounced back move up to $9,141-$9,198 levels whereas support is at $9,030-$8,980 levels, " Neha Qureshi, Technical Research Analyst at Reliance Securities said.
MCX Copper March holds support near Rs 671 - Rs 668 levels where it could see an upside move up to Rs 678 - Rs 781 levels. She advised her clients to buy March Copper at Rs 674 with a stop loss of Rs 671 and for a target of Rs 680.
The US dollar traded slightly lower at 91.87 or up 0.06 percent in the evening session.
MCX METLDEX rose 35 points, or 0.25 percent, at 13,940 at 18:27. The index tracks the real-time performance of key base metals.
In the futures market, copper for March delivery touched an intraday high of Rs 676.65 and a low of Rs 668.85 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 by Rs 1.25, or 0.19 percent, to Rs 673.95 per kg at 18:28 hours with a business turnover of 2,372 lots. The same for April contract eased by Rs 0.55, or 0.08 percent to Rs 677.90 per kg with a turnover of 2,073 lots.
The value of March and April’s contracts traded so far is Rs 1,152.29 crore and Rs 198.89 crore, respectively.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Copper is trading in the range of Rs 675 - Rs 669 since morning. Market breached the support of Rs 672 - Rs 667 levels in the previous session but could not sustain below it. We may expect prices to rise and test Rs 677 - Rs 681 levels on the upside.
Axis Securities advised its clients to buy copper at Rs 670 with a stop loss at Rs 666 and for a target of Rs 676.
At 1306 (GMT), the red metal price marginally gained 0.05 percent, quoting at $9,068.75 per tonne in London.
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