Copper is trading on a negative note where it has bounced back from its 21-Daily Moving Average which is placed at $6,655 levels, indicating sideways momentum in the counter.
Copper prices traded lower at Rs 525.30 per kg on October 13 as participants increased their short position as seen by the open interest. The base metal complex declined tracking rebounding dollar.
The US Dollar Index traded firm at 93.27 levels, up 0.18 percent.
The International Monetary Fund (IMF) on October 13 forecasted a deep global recession this year and the world growth to be - 4.4 percent, stating that the global economic crisis is far from over due to the impact of the coronavirus pandemic.
Copper prices came under pressure amid surge in stock at LME accredited warehouses, but lower stockpiles at SHFE warehouses along with the threat of a supply disruption from Chilean copper mine may cap the downside.
“LME Copper prices were trading surprisingly weaker Tuesday evening in Asian trade. Prices are down despite upbeat data from China this morning,” said Neha Qureshi, Technical Research Analyst at Reliance Securities.
Technically, LME Copper opened on a flat note at $6,738.00, made a high of $6,738.00 where it made a low of $6,657.50. Prices are currently trading at $6,712. Yesterday’s close was $6634.75. Copper is trading on a negative note where it has bounced back from its 21-Daily Moving Average which is placed at $6,655 levels indicating sideways momentum in the counter. Resistance is at $6,790-$6,812 levels.
MCX iCOMDEX Base Metal Index was down 56.02 points, or 0.47 percent, at 11,981.48 at 18:50.
In the futures market, copper for October delivery touched an intraday high of Rs 526.90 and a low of Rs 521.95 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 Rs 2.60, or 0.49 percent, to Rs 525.30 per kg at 18:51 hours with a business turnover of 5,233 lots. The same for November contract dropped Rs 2.45, or 0.47 percent, to Rs 523.75 per kg with a turnover of 814 lots.
The value of October and November’s contracts traded so far is Rs 1,539.40 crore and Rs 24.60 crore, respectively.
MCX Copper October has bounced back from its 21 as well as 50 Daily Moving Average which signifies that Rs 520 levels hold immediate support in the counter with resistance placed at Rs 527-529 levels, said Qureshi. Copper could trade sideways to marginal upside momentum, she said.
At 1323 (GMT), the red metal price was slipped 0.58 percent quoting at $6,695.75 per tonne in London.For all commodities related news, click here