Copper prices traded steady at Rs 602.75 per kg on December 14 as participants increased their long positions as seen by the open interest. The base metal pared gains after a gap-up and turned flat in the second half.
Copper has turned sideways to higher tracking upbeat risk appetite and weakness in the US dollar index.
Antofagasta, a Chilean miner, successfully struck a deal with one of the unions at its Centinela mine, while negotiation with another continued.
The copper price is also getting support from lower stock at LME-approved warehouses.
Hedge funds and money managers raised their bullish position in COMEX copper contracts by 4,694 contracts to 90,434 in the week to December 8, according to data from CFTC.
The US dollar trades lower at 90.47, or down 0.50 percent in the evening session.
Neha Qureshi, Technical Research Analyst at Reliance Securities, said: “LME Copper is trading on a flat note where it is trading below $7,800 levels. It could trade in a range of $7,680-$7,830 levels. MCX Copper December is trading on a muted note where Rs 605 levels hold resistance and immediate support is at Rs 597 levels where it is likely to trade in this range.”
She advised clients to buy Copper December at Rs 598.599 with a stop loss of Rs 596 and for a target of Rs 605.
MCX iCOMDEX Base Metal Index edged higher by 100.40 points, or 0.74 percent, at 13,743.76 at 16:36.
In the futures market, copper for December delivery touched an intraday high of Rs 605.65 and a low of Rs 601.10 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 501 and a high of Rs 607.85.
Copper delivery for December gained Rs 1, or 0.17 percent, to Rs 602.75 per kg at 16:38 hours with a business turnover of 5,301 lots. The same for the January contract soared Rs 1.15, or 0.19 percent to Rs 602.35 per kg with a turnover of 479 lots.
The value of December and January’s contracts traded so far is Rs 768.07 crore and Rs 23.36 crore, respectively.
Kshtij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited, said, “MCX Copper is continuously sustaining above 40 EMA and in a strong uptrend. It has been trading in the range Rs 598-595 during the evening session with resistance at Rs 606-608 levels.
At 1113 (GMT), the red metal price was up 0.32 percent quoting at $7,795.25 per tonne in London.
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