Copper prices slipped around 1 percent to Rs 672.30 per kg on March 16 as participants increased their short positions as seen by the open interest. The base metal extended decline to trade at day’s low after a gap down open tracking subdued global trend.
The base metal has been trading higher than 50, 100 and 200 days' moving averages but lower than the 20 and 5 days’ moving average on the daily chart. The Relative Strength Index (RSI) is at 49.81 which indicates neutral momentum in prices.
Copper prices sought support from a jump in China’s copper imports along with supply worries from top producers Chile and Peru, however, reports of a rise in output from China along with a recent rebound in stocks at LME warehouses and higher stocks at SHFE warehouses capped the upside, said Kotak Securities.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Copper prices are sustaining above support levels of Rs 672-667. We may expect marginal sideways and a bearish trend to persist in the evening session as well. The metal has resistance at Rs 680-684 levels.”
The US dollar traded slightly lower at 91.81 or down 0.02 percent in the evening session.
MCX METLDEX fell 28 points, or 0.20 percent, at 13,838 at 18:42. 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 678.80 and a low of Rs 670.35 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 dropped Rs 6.35, or 0.94 percent, to Rs 672.30 per kg at 16:43 hours with a business turnover of 3,211 lots. The same for April contract slipped Rs 7.50, or 1.10 percent to Rs 675.05 per kg with a turnover of 1,119 lots.
The value of March and April’s contracts traded so far is Rs 1,308.48 crore and Rs 143.07 crore, respectively.
MCX Copper price is expected to trade in a bearish trend with strong resistance at Rs 677 level and intermediate resistance at Rs 674 level, said Motilal Oswal. The brokerage firm advised its clients to sell on rallies targeting lower support at Rs 668.50-665 zone.
At 1316 (GMT), the red metal price decreased 1.23 percent, quoting at $9,003 per tonne in London.
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