Copper prices rose marginally to Rs 612.85 per kg on January 21 with support from falling stocks in LME and ShFE-approved warehouses along with signs of tightness in the physical market and prospect of further stimulus measures in the US. The base metal pared gains in the evening after a gap-up opening.
The US dollar traded 0.34 percent lower at 90.15 in evening trade. The greenback has shed 0.65 percent this week.
Neha Qureshi, Technical Research Analyst at Reliance Securities said, “LME Copper is holding above $8,060 levels where it has the strong support of 21-Daily Moving Average which is placed at $7,940 levels indicating for positive momentum up to $8,075-$8,098 levels while support is at $8,015-$7,960 levels. MCX Copper January holds immediate support near Rs 609-607 levels from where prices could bounce back up to Rs 613-616 levels.”
She advised her clients to buy January Copper future at Rs 610-609.50 with a stop loss at Rs 607.50 and for a target of Rs 615.
MCX iCOMDEX Base Metal Index jumped 95.27 points, or 0.69 percent, at 13,902.31 at 18:16.
In the futures market, copper for January delivery touched an intraday high of Rs 614.85 and a low of Rs 612.15 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 548 and a high of Rs 631.20.
Copper delivery for January jumped Rs 1.50, or 0.25 percent, to Rs 612.85 per kg at 18:19 hours with a business turnover of 2,954 lots. The same for February contract rose Rs 2.45, or 0.40 percent to Rs 616.70 per kg with a turnover of 2,529 lots.
The value of January and February contracts traded so far is Rs 843.37 crore and Rs 241.74 crore, respectively.
Kshtij Purohit, Product Manager Currency & Commodities, CapitalVia Global Research Limited said, “MCX Copper is sustaining below the resistance of Rs 615-619 levels and we may expect the market test them in the evening session. The levels of Rs 606-605 could act as a support for the prices.”
At 1252 (GMT), the red metal price was up 0.31 percent quoting at $8,065.50 per tonne in London.
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