Buy MCX Copper at Rs 442.5: Dani Commodities

Dani Commodities has come out with its report on Copper. According to the research firm, one can buy MCX Copper at Rs 442.50 with stoploss of Rs 440.50 for a target of Rs 445.

Copper benchmark contract on MCX managed to snap minor gains on Thursday's trades on account of depreciation in Rupee against the Dollar. MCX Copper counterpart LME forwards appreciated marginally higher as the Dollar moved to a one week high. The moves in overall metals pack can be on the lower side on Friday after dismal set of data from China. Euro dipped to a one week low against the US Dollar with pair settling at 1.3396, down 124 pips.

European Central Bank (ECB) president Mario Draghi said that bank will be keeping an eye on the Euro strength for seeking any signs of inflation in the region. ECB kept its interest rates to 0.75% on Thursday's meet. In US, jobless claims declined by 5000 to 366000 according to a report from US labor department. While the news is positive, uptick in US Dollar and decline in China is creating more furor among investors. China trade data released by General Administration of Customs today showed that Copper and Copper products imports declined by a sharp 15.2% to 350958 tonnes in the month of January. However scrap Copper imports increased by 66% to 380000 tonnes, an indicator that China is opting for cheaper sources.

MCX Copper: Buy at 442.50, Stoploss 440.50, Target 445.

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