Copper prices rose to Rs 668.70 per kg on March 24 as participants increased their long positions as seen by the open interest. The base metal extended gain after a gap down open tracking positive global cues.
The non-ferrous metal has been trading higher than 50, 100 and 200 days' moving averages but lower than 20 and 5 days’ moving average on the daily chart. The Relative Strength Index (RSI) is at 49.04 which indicates sideways momentum in prices.
Copper storage levels at the London Metal Exchange has decreased causing a deficit on the supply side supporting further upside.
The red metal remains sensitive to any mine supply risk and a synchronised economic recovery and green push should provide broader support for demand despite ongoing financial tightening in China.
Neha Qureshi, Technical Research Analyst at Reliance Securities said, “LME Copper could see a Bearish momentum below 21-Daily Moving Average which is at $9060 level indicating downside momentum up to $8890-$8800 levels. Resistance is at $9050-$9180 levels.”
MCX Copper April could see support near Rs 673-671 where upside resistance is at Rs 678-781 levels indicating sideways momentum in the counter. She advised her clients to sell April Copper at Rs 678 with a stop loss of Rs 681 and a target of Rs 673.
The US dollar rose to 92.48 or up 0.15 percent in the evening session against the rival currencies.
MCX METLDEX soared 69 points, or 0.50 percent, at 13,821 at 18:22. 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 671.80 and a low of Rs 663.05 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 edged higher Rs 3.10, or 0.47 percent, to Rs 668.70 per kg at 18:24 hours with a business turnover of 1,297 lots. The same for April contract gained Rs 3.80, or 0.57 percent to Rs 674.40 per kg with a turnover of 3,046 lots.
The value of March and April’s contracts traded so far is Rs 885.78 crore and Rs 614.36 crore, respectively.
MCX Copper is expected to trade in a sideways trend with resistance at Rs 681 level and support at Rs 673 level, according to Motilal Oswal.
Geojit Financial Services Limited said, “The buying sentiments may flourish only by sturdy trades above Rs 679 region. If prices failed to mark such a move may dent intraday buying sentiments.
At 1258 (GMT), the red metal price inched higher 1.12 percent, quoting at $8,970.75 per tonne in London.
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