Copper prices declined to Rs 674.20 per kg on March 18 as participants increased their short positions as seen by the open interest. The base metal traded in the negative territory after a gap-down start, tracking weak global cues and firm dollar.
The non-ferrous metal has been trading higher than 50, 100 and 200 days' moving averages but lower than the 20 and 5 days’ moving average on the daily chart. The Relative Strength Index (RSI) is at 50.46, which indicates neutral momentum in prices.
Copper prices fell today as increasing global stocks and falling premiums in top consumer China stoked demand worries and offset support from a weaker dollar amid dovish US central bank comments.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Copper prices are moving in a marginally sideways trend and consolidating between the levels of Rs 674-Rs 671. If the price does not fall below this range, then resistance may be tested in the range of Rs 675-Rs 677. LME supplies for copper are in huge deficit for the day and we may expect bullish momentum in the evening session if prices are supported with adequate volumes.”
The US dollar traded firm at 91.83 or up 0.45 percent in the evening session.
MCX METLDEX fell 48 points, or 0.35 percent, at 13,801 at 19:05 hours. The index tracks the real-time performance of key base metals.
In the futures market, copper for March delivery touched an intraday high of Rs 678.50 and a low of Rs 671.60 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 585.70 and a high of Rs 737.
Copper delivery for March slipped Rs 1.90, or 0.28 percent, to Rs 674.20 per kg at 19:07 hours with a business turnover of 3,008 lots. The same for April contract declined Rs 1.85, or 0.27 percent to Rs 677.60 per kg with a turnover of 1,468 lots.
The value of March and April’s contracts traded so far is Rs 1,449.98 crore and Rs 150.43 crore, respectively.
MCX Copper price is expected to trade in a positive trend with strong support at Rs 669 level and intermediate support at Rs 672 level, said Motilal Oswal Financial Services (MOFSL). The brokerage firm advised its clients to buy on dips targeting higher resistance at Rs 677 - Rs 680 zone.
At 1339 (GMT), the red metal price was trading 1.10 percent lower at $9,036 per tonne in London.
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