Copper prices on April 23 rose to Rs 733.10 per kg as participants rolled over their long positions as seen from open interest. The base metal extended gain after a gap-up open in the evening session to trade at day’s high.
The non-ferrous metal has been trading higher than 5, 20, 50, 100 and 200 days' moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 68.57 which indicates bullish movement in prices.
Copper prices in LME touched two-month high and on track for a third straight week of gains, as a weaker dollar boosted the appeal of metal priced in the US currency for holders of other currencies.
Expectations for a boom in copper demand during the transition to a lower-carbon economy and global economic recovery have also lent support.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Copper prices are sustaining above 50-SMA and we may expect a bounce from the support levels of Rs 719-723 in the upcoming sessions and price to trade at higher levels at Rs 736-740.”
The US dollar trades weaker at 91.07, down 0.27 percent in the evening session against the rival currencies.
MCX METLDEX climbed 193 points, or 1.33 percent, at 14,722 at 20:41. The index tracks the real-time performance of key base metals.
In the futures market, copper for April delivery touched an intraday high of Rs 733.10 and a low of Rs 726.70 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 657.85 and a high of Rs 734.35.
Copper delivery for April gained Rs 8.80, or 1.21 percent, to Rs 733.10 per kg at 20:42 hours with a business turnover of 1,426 lots. The same for May contract rose Rs 9.50, or 1.30 percent to Rs 738.60 per kg with a turnover of 3,769 lots.
The value of April and May’s contracts traded so far is Rs 1,054.91 crore and Rs 939.90 crore, respectively.
MCX Copper is expected to trade in a bullish trend with support at Rs 731 and intermediate support at Rs 733.50, said Motilal Oswal. The brokerage firm advised its clients to buy on dip targeting higher resistance at Rs 737.50-739.50 zone.
At 1338 (GMT), the red metal price climbed 1.56 percent, quoting at $9,542.25 per tonne in London.
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