Copper prices shed over 2 percent to Rs 597.95 per kg on January 22 as the buzz around US stimulus eased and worries over rising COVID-19 cases in China deepened. The base metal extended decline and trade at day’s low after a gap opening.
The red metal prices were under pressure on jump in China’s output. However, falling inventory at LME and ShFE-accredited warehouses capped the downside.
The US dollar traded firm at 90.23 in the evening session.
Kshtij Purohit, Product Manager Currency & Commodities, CapitalVia Global Research said, “MCX February Copper bounced back from the resistance of Rs 617-619 levels in the previous session and has declined more than 2 percent since morning. It has already tested the support levels of Rs 600-606 and we may expect a bounce back from these levels in the evening session.”
MCX iCOMDEX Base Metal Index declined 246.35 points, or 1.78 percent, at 13,600.27 at 18:23.
In the futures market, copper for January 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 548 and a high of Rs 631.20.
Copper delivery for January edged lower Rs 12.70, or 2.08 percent, to Rs 597.95 per kg at 18:25 hours with a business turnover of 725 lots. The same for February contract slipped Rs 12.55, or 2.04 percent to Rs 602.30 per kg with a turnover of 3,859 lots.
The value of January and February’s contracts traded so far is Rs 280.18 crore and Rs 1,334.04 crore, respectively.
MCX Copper has immediate support at Rs 600 whereas resistance is at Rs 605.80-609, said Motilal Oswal. The broking firm said selling on a sustained break below support will be recommended for a target of Rs 594.
At 1258 (GMT), the red metal price was down 1.89 percent quoting at $7,884.50 per tonne in London.
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