Copper prices jumped to Rs 663.95 per kg on March 26 as participants increased their long positions as seen by the open interest. The base metal extended gain after a gap up open tracking positive global cues.
The non-ferrous metal has been trading higher than 50, 100 and 200 days' moving averages but lower than 20 and 5 days’ moving average on the daily chart. The Relative Strength Index (RSI) is at 47.62 which indicates sideways momentum in prices.
The red metal prices in LME gained on Friday, tracking gains in the equities market lifted by hopes of global economic recovery on positive US labour data and its faster-than-expected COVID-19 vaccination roll-out plans.
Copper Inventories at LME approved warehouses have increased giving a surplus on the supply side capping the upside move.
Neha Qureshi, Technical Research Analyst at Reliance Securities said, “LME Copper has taken a halt near in multiple support zone at $8,650-$8,700 levels from where it has bounced back and is trading on a positive note at $8,917 levels. However, below $8,990 will continue its downside pressure up to $8,770-$8,680 levels.”
“MCX Copper April has bounced back from 50-Daily Moving Average which is placed at Rs 653 levels where upside could see Rs 674-680 levels and support is at Rs 664-659 levels.” She advised her clients to sell April Copper at Rs 673 with a stop loss of Rs 677 and for a target of Rs 663.
The US dollar was flat at 92.82 in the evening session against the rival currencies on safe-haven appeal.
MCX METLDEX rose 105 points, or 0.77 percent, at 13,829 at 18:49. The index tracks the real-time performance of key base metals.
In the futures market, copper for March delivery touched an intraday high of Rs 666.50 and a low of Rs 660.55 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 585.70 and a high of Rs 737.
Copper delivery for March gained Rs 6.90, or 1.05 percent, to Rs 663.95 per kg at 18:51 hours with a business turnover of 373 lots. The same for April contract soared Rs 6.60, or 1 percent to Rs 668.80 per kg with a turnover of 3,287 lots.
The value of March and April’s contracts traded so far is Rs 9.12 crore and Rs 1,034.86 crore, respectively.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX April Copper is trading in bullish momentum. The price has breached major support of Rs 668-664 in the previous session but could not sustain below them. We may expect a rise in prices may rise a little and test Rs 672-674 levels on the upside.
MCX Copper has immediate support at Rs 664 whereas resistance is at Rs 672-675 levels, said Motilal Oswal. The brokerage firm advised its clients to buy as long as the price holds above support.
At 1326 (GMT), the red metal price inched higher 1.52 percent, quoting at $8,933.50 per tonne in London.
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