Copper prices on April 26 surged to Rs 753.50 per kg after touching a new lifetime high of Rs 754.20 during intraday on the MCX. The base metal extended gain after a gap-up open in the evening session to trade at day’s high.
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 73.87 which indicates upbeat movement in prices.
Appetite for copper was also supported after the United States and other countries lifted their targets for slashing greenhouse gas emissions, as the metal is expected to benefit from green investments into electric vehicles and renewable energy.
Speculators reduced their net long positions in copper futures and options by 9,864 contracts to 38,273 in the week to April 13, the US CFTC said.
Shanghai copper prices hit their highest level in over 10 years while the London contract jumped to a decade high as supply concerns and weaker dollar boosted prices. The dollar slumped to an almost eight-week low versus major peers amid speculation that US Fed Chief Powell will shun talk of tapering bond purchases at a policy meeting this week, said Motilal Oswal.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities, said, “Base metals complex traded higher with most of the metals witnesses strong buying on higher demand optimism from China and the US. Copper prices traded higher near the highest since the last supercycle, underpinned by spending on green infrastructure and a weaker dollar. The higher demand expectations from green technologies have boosted buying in copper despite higher inventories at SHFE."
Patel expects base metals to trade higher with MCX Copper May futures have near term resistance at Rs 760 per KG with support at Rs 728 per KG for the short term.
The US dollar trades slightly up at 90.89, up 0.06 percent in the evening session against the rival currencies.
MCX METLDEX climbed 184 points, or 1.25 percent, at 14,926 at 19:00. The index tracks the real-time performance of key base metals.
Also read: MCX Copper rises for second consecutive week, price in uncharted territory; check outlook & strategy for next week
In the futures market, copper for May delivery touched an intraday high of Rs 754.20 and a low of Rs 741.50 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 754.20.
Copper delivery for May gained Rs 12.55, or 1.70 percent, to Rs 752.45 per kg at 19:02 hours with a business turnover of 4,979 lots. The same for the June contract rose Rs 14.55, or 1.97 percent to Rs 752.80 per kg with a turnover of 45 lots.
The value of May and June’s contracts traded so far is Rs 1,566.31 crore and Rs 23.61 crore, respectively.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited, said, “MCX Copper has risen more than 1 percent since the previous close. Prices are sustaining above 20-SMA and we may expect bullish momentum to continue in the upcoming session.”
At 1336 (GMT), the red metal price soared 2.02 percent, quoting at $9,742.25 per tonne in London.
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