Copper prices traded on a positive note and edged higher to Rs 759.30 per kg in thin trade as the Chinese market and LME are closed due to holiday. The base metal surged 2 percent last week on the domestic bourse.
The non-ferrous metal has been trading higher than 5, 20, 50, 100 and 200 days' moving averages on the daily chart for the May series. The momentum indicator Relative Strength Index (RSI) is at 73.35, which indicates bullish movement in prices.
Copper drifted lower, hovering below the $10,000 level it briefly broke in the earlier session as the dollar strengthened and some speculators locked in profits. "We expect risk assets and commodity currencies to do well in the coming weeks and this should provide LME base metal prices with additional support to venture higher," said Motilal Oswal.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities said, “Base metals prices traded higher and most of the metals gained in the morning trade on Monday. Base metals traded positive over a stronger economic outlook with positive US data. The ease in lockdown measures in Europe also lifted demand prospectus. Base metals complex got support from another US stimulus package.”
Copper prices continued upside despite a boost in output from major mine and a rise in Shanghai inventories. The surge in Copper prices has impacted consumption in China with idle units and delayed deliveries.
Patel expects base metals to trade sideways to higher for the day. MCX Copper May futures support lies at Rs 748 and resistance is seen at Rs 770.
The US dollar traded weaker at 91.09, down 0.20 percent in the evening session against the rival currencies.
MCX METLDEX surged 68 points, or 0.45 percent, at 15,247 at 19:06. The index tracks the real-time performance of key base metals.
In the futures market, copper for May delivery touched an intraday high of Rs 761.20 and a low of Rs 752.20 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 658 and a high of Rs 768.30.
Copper delivery for May edged higher by Rs 5.20, or 0.69 percent, to Rs 759.30 per kg at 19:08 hours with a business turnover of 4,452 lots. The same for June contract rose by Rs 5.30, or 0.70 percent to Rs 761.20 per kg with a turnover of 159 lots.
The value of May and June’s contracts traded so far is Rs 1,662.46 crore and Rs 46.43 crore, respectively.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Market is sustaining above the support of Rs 749- Rs 753 levels. We may expect the prices to rise from these levels and test resistance zone of Rs 763 - Rs 768 in the upcoming sessions.”
At 13:36 (GMT), the red metal price jumped 0.78 percent to quote at $4.50 per pound in New York.
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