Copper prices edged higher to Rs 606.90 per kg on January 4 as participants increased their long positions as seen by the open interest. The base metal traded in the green in the evening session after a gap up opening on dollar weakness.
Copper prices are expected to rise as more and more nations move ahead with plans to turn their economies greener with emphasis on electric vehicles and renewable energy.
Factory activity in China, the world’s biggest metal consumer, expanded in December as export demand fuelled economic recovery after a COVID-19- pandemic-induced slump.
The US dollar traded lower at 89.48, or down 0.45 percent, in the evening session.
“LME Copper has formed a Long Bullish Candlestick where its trading above $7,940 levels where further could see $7,990-$8,044 levels with support placed at $7894-$7833 levels,” said Neha Qureshi, Technical Research Analyst at Reliance Securities.
“MCX Copper January is trading above 21-Daily Moving Average is placed at Rs 602.50 levels above which will continue its bullish momentum up to Rs 609-612 levels," she said.
MCX iCOMDEX Base Metal Index edged higher 289.10 points, or 2.16 percent, at 13,650.30 at 18:13.
In the futures market, copper for January delivery touched an intraday high of Rs 608.40 and a low of Rs 599 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 548 and high of Rs 618.
Copper delivery for January gained Rs 11.70, or 1.97 percent, to Rs 606.90 per kg at 18:14 hours with a business turnover of 4,807 lots. The same for February contract jumped Rs 11.95, or 2.01 percent, to Rs 606.60 per kg with a turnover of 140 lots.
The value of January and February’s contracts traded so far is Rs 1,022.67 crore and Rs 28.23 crore, respectively.
Kshtij Purohit, Product Manager Currency and Commodities, CapitalVia Global Research Limited, said: “A correction in the bull move could take place in the upcoming session where day low of Rs 599 could act as minor support. Any dip in the prices could act as a buying opportunity with resistance placed at Rs 606-613 levels.”
At 1247 (GMT), the red metal price soared 2.09 percent quoting at $7,918 per tonne in London.
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