Copper prices slid to Rs 608.50 per kg on January 15 as participants increased short position as seen by the open interest. The base metal extended decline after a gap down open on the firm dollar.
Base metals consolidated at highs after stimulus announcement and fall in LME and ShFE warehouse stocks. However, the upside was capped amid demand concerns from the biggest metals’ consumer, China, where the coronavirus outbreak has prompted the government to re-impose lockdowns.
The US dollar traded higher at 90.45, or up 0.27 percent, in the evening session.
“LME Copper is trading on a flat note where above $8,000 will continue its positive momentum up to $8,135-$8,199 levels. Support is at $7,980-$7,965 levels. MCX Copper January holds support at Rs 607 levels which is also a 21-Daily Moving Average. Therefore indicating for positive momentum up to Rs 612-615. Support is at Rs 608-606 levels,” said Neha Qureshi, Technical Research Analyst at Reliance Securities.
She advised her clients to buy January Copper future at Rs 609-608.50 with a stop loss at Rs 606 and for a target of Rs 614.
MCX iCOMDEX Base Metal Index fell 168.96 points, or 1.22 percent, at 13,670.55 at 18:52.
In the futures market, copper for January delivery touched an intraday high of Rs 615 and a low of Rs 606.70 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 548 and a high of Rs 631.20.
Copper delivery for January slipped Rs 6.70, or 1.09 percent, to Rs 608.50 per kg at 18:53 hours with a business turnover of 3,617 lots. The same for February contract dipped Rs 7.05, or 1.14 percent, to Rs 611.05 per kg with a turnover of 1,130 lots.
The value of January and February’s contracts traded so far is Rs 1,320.84 crore and Rs 72.71 crore, respectively.
Axis Securities advised its clients to sell copper January at Rs 610 with stop loss at Rs 613 and target of Rs 606.
At 1326 (GMT), the red metal price edged lower 1.19 percent quoting at $7,986.25 per tonne in London.
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