In the futures market, copper for October delivery touched an intraday high of Rs 530.50 and a low of Rs 527.05 per kg on the MCX.
Copper prices traded weaker at Rs 529.10 per kg on October 16 as participants increased their short position as seen by the open interest. Base metals in the international market traded mixed amid continuing uncertainty regarding US stimulus, Brexit and rising coronavirus cases.
The US dollar index trades lower at 93.64, down 0.24 percent.
Copper prices have been supported by robust demand in China and supply concerns relating to Chile. However, rising stocks at LME may cap upside.
Sunand Subramaniam, Senior Research Associates at Choice Broking said, “Fundamentally for the coming month, we expect copper futures to trade mixed amid prevailing worries in economic activities in global markets especially in South Asia and China. Moreover, mixed inventories in the LME warehouses are estimated to cushion prices from lower levels.”
According to the International Copper Study Group, global usage for June 2020 is at 2.061 million tonnes, higher by 0.44 percent compared to 2.052 million tonnes of the previous month. Global production for copper in June 2020 stood at 2.253 million tonnes, higher compared to 2.088 million tonnes of June 2019. A significant increase in usage over the production is expected to bring a bullish trend in MCX Copper futures for the month ahead, he said.
MCX iCOMDEX Base Metal Index was up 12.16 points, or 0.10 percent, at 11,970.73 at 18:33.
In the futures market, copper for October delivery touched an intraday high of Rs 530.50 and a low of Rs 527.05 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 494.80 and a high of Rs 532.60.
Copper delivery for October fell by Rs 1.60, or 0.30 percent, to Rs 529.10 per kg at 18:34 hours with a business turnover of 5,701 lots. The same for November contract slipped Rs 0.75, or 0.14 percent to Rs 528.40 per kg with a turnover of 1,125 lots.
The value of October and November contracts traded so far is Rs 1,276.45 crore and Rs 20.44 crore, respectively.
On the daily chart, Copper October future has broken above its “Ichimoku Cloud” which suggests strength in the counter. Prices have consolidated for the past couple of days and given a strong upward spurt signalling positive momentum. The Relative Strength Indicator (RSI) has sustained above 50 levels confirming bulls are in control.
Subramaniam expects a bullish movement in MCX Copper futures for the month ahead. The price may find resistance around Rs 537 levels and support is placed at Rs 510 levels.
At 1312 (GMT), the red metal price was down 0.56 percent quoting at $6,740.25 per tonne in London.For all commodities-related news, click here