Copper prices eased 0.35 percent to Rs 598.50 per kg on January 29 on increased volatility in the international market. The base metal traded in the red after a gap-down open tracking firm dollar in the evening session.
Logistical issues in COVID-19 vaccinations dented hopes for a speedy recovery in the global economy, keeping a lid on prices for copper.
Copper stocks in warehouses certified by the LME are at their lowest since September at 76,350 tonnes. Stocks in warehouses registered with the Shanghai Futures Exchange are at their lowest since 2011 while Comex inventories are also slipping.
The Yangshan copper premium rose to $72 a tonne, the highest since August 2020.
The US dollar traded firm at 90.45 or up 0.02 percent in the evening session.
Neha Qureshi, Technical Research Analyst at Reliance Securities said, “LME Copper has bounced back from $7,780 levels which is 50-Daily Moving Average where it is trading on a negative note near $7,970 levels indicating for sideways momentum to continue in the range of $7,780-$7,940 levels.”
MCX Copper February is trading below its 21 as well as 50 Daily Moving Average where below Rs 600 levels will continue to trade on Bearish note up to Rs 593-589 levels. Resistance is at Rs 599-602 levels, she said.
The brokerage firm advised its clients to sell Copper February at Rs 603-604 with a stop loss at Rs 607 for a target of Rs 596.
MCX iCOMDEX Base Metal Index declined 34.55 points, or 0.26 percent, at 13,414.83 at 18:27.
In the futures market, copper for February delivery touched an intraday high of Rs 607.80 and a low of Rs 595.35 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 587.75 and a high of Rs 629.75.
Copper delivery for February edged lower Rs 2.10, or 0.35 percent, to Rs 598.50 per kg at 18:29 hours with a business turnover of 4,587 lots. The same for March contract dropped Rs 1.55, or 0.26 percent to Rs 600 per kg with a turnover of 132 lots.
The value of February and March’s contracts traded so far is Rs 1,497.38 crore and Rs 19.58 crore, respectively.
Kshtij Purohit, Product Manager Currency & Commodities, CapitalVia Global Research Limited said, “MCX Copper February is sustaining below Rs 600-604 levels, which may act as intraday resistance for the prices. On the downside, intraday support is at Rs 593-588 levels. We may expect the market to trade in a sideways range for Rs 604-586 in the upcoming session.
At 1302 (GMT), the red metal price was down 0.43 percent quoting at $7,868.75 per tonne in London.
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