MCX Copper nears lifetime high, LME surges above $10,000/tonne on resumption in economic activity
The reopening of economies and speculative buying was the trigger for the move higher.
Mumbai / May 06, 2021 / 19:25 IST
Copper prices climbed near to lifetime high in the domestic bourse and crossed above $10,000/tonne in LME tracking retreat in the dollar, biggest economies showing signs of recovery from the virus impact increasing prospects of improved demand.The base metal extended gains in the evening trade after a gap-up start to trade at a high point of the day.Copper delivery for May rose Rs 7.80, or 1.02 percent, to Rs 768.90 per kg at 18:43 hours with a business turnover of 5,334 lots. The same for June contract edged higher Rs 7.15, or 0.94 percent to Rs 771.15 per kg with a turnover of 159 lots.The value of May and June’s contracts traded so far is Rs 1,481.75 crore and Rs 33.98 crore, respectively.MCX METLDEX surged 63 points, or 0.41 percent, at 15,358 at 18:45. The index tracks the real-time performance of key base metals.Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Copper has been sustaining above 50-SMA. Prices are moving with marginal bullish momentum where major support levels are Rs 749-753 levels. We may expect the market to rise and breach the resistance levels of Rs 767-770 during the evening session.”The reopening of economies and speculative buying was the trigger for the move higher. Speculators raised their bets on prices climbing, with the net long position at 42% of open interest. LME copper stocks fell to 132,775 tonnes, their lowest since March 29.Global copper smelting rebounded in April from the lowest levels in at least five years in the previous month as a price rally spurred more activity, data from satellite surveillance of copper plants showed.The US dollar depreciates 0.29 percent to 91.02 in the evening session against the rival currencies.TechnicalsThe non-ferrous metal has been trading higher than 5, 20, 50, 100 and 200 days' moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 74.55 which indicates upbeat movement in prices.At 1324 (GMT), the red metal price jumped 1.38 percent, quoting at $10,070.50 per tonne in London.Trading IdeasMCX Copper price is expected to trade in a bullish trend with support at Rs 760 level and intermediate support at Rs 762.50 level, said Motilal Oswal. The brokerage firm advised its clients to buy on dips targeting higher resistance at Rs 768-770.50 zone.Axis Securities advised its clients to sell copper at Rs 765 with stop loss at Rs 770 and a target of Rs 758.
Geojit Financial ServicesGeojit Financial Services said a major liquidation move may develop only by decisive trades below the downside hurdle of Rs 760 region. Inability to mark such trades may retain broad buying momentum.For all commodities-related news, click here
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