Copper prices declined to Rs 676.80 per kg on March 12 as participants increased their short positions as seen by the open interest. Industrial metals slipped lower on the domestic exchange on firmer dollar and signs of higher supplies.
Copper extended decline after a gap-down start in the evening session, tracking weak 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 51.39, which indicates neutral momentum in prices.
The red metal dipped as the rally that pushed prices to near a 10-year high ran out of steam amid signs of higher supply and weakening demand growth this year.
Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers said, “Yesterday metals finished the session on a positive undertone as Biden’s $1.9 trillion COVID-19 relief package became law. Copper, Nickel, Zinc and Aluminium appreciated on optimism that President Joe Biden may announce an infrastructure plan of more than $2 trillion at the end of this month.”
“Copper on the LME are experiencing the correction in a day session. Moreover, strong rupee is putting pressure. Hence, we expect the sentiment to stay negative in intraday”, he added.
The US dollar traded firm at 91.80 or up 0.43 percent in the evening session.
MCX METLDEX was down 108 points, or 0.72 percent, at 13,840 at 18:53 hours. 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 680.65 and a low of Rs 672.20 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 7.30, or 1.07 percent, to Rs 676.80 per kg at 18:54 hours with a business turnover of 3,469 lots. The same for April contract eased Rs 7.80, or 1.14 percent to Rs 678.75 per kg with a turnover of 823 lots.
The value of March and April’s contracts traded so far is Rs 1,613.52 crore and Rs 62.87 crore, respectively.
Neha Qureshi, Technical Research Analyst at Reliance Securities said, “LME Copper is sustaining above 21-Daily Moving Average which is placed at $8920 levels where further it could see $9130-$9260 levels. Support is at $8990-$8840 levels.”
MCX Copper March below Rs 683 level could see sideways to marginal downside momentum Rs 672 - Rs 668 levels. Resistance is at Rs 680 - Rs 684 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.
At 13:26 (GMT), the red metal price declined 0.66 percent, quoting at $9,067.25 per tonne in London.
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