Copper prices slide to Rs 634.30 per kg on February 11 as participants increased their short positions. The base metal traded in negative territory after a gap-down open in evening trade, tracking the weak global trend.
Base metals have been in a rising trend for much of the month, with some pause seen in today’s session. China’s seven-day holiday is starting today, and hence trading activity will be lower and volatility could be higher.
Markets have turned choppy as investors assess yesterday’s weak inflation data from the US against an expectation of intensifying price pressure in the coming month as US President Joe Biden pushes for major stimulus.
Copper stocks in LME-registered warehouses increased marginally, indicating pressure on prices.
The US dollar traded weaker at 90.29 or down 0.06 percent in the evening session.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited, said: “MCX Copper may witness a fall in the prices where Rs 631-629 levels may act as a minor support, which when broken with heavy volume may lead to decline till the levels of Rs 622-617 on the downside.”
MCX iCOMDEX Base Metal Index was down 12.36 points, or 0.09 percent, at 14,141.50 at 19:49.
In the futures market, copper for February delivery touched an intraday high of Rs 638.70 and a low of Rs 633.35 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 585 and a high of Rs 640.35.
Copper delivery for February slipped by Rs 3.05, or 0.48 percent, to Rs 634.30 per kg at 19:51 hours with a business turnover of 5,066 lots. The same for March contract edged lower by Rs 3.15, or 0.50 percent to Rs 632.20 per kg with a turnover of 1,479 lots.
The value of February and March’s contracts traded so far is Rs 1,442.96 crore and Rs 100.31 crore, respectively.
MCX Copper will face stiff resistance at Rs 638-640 whereas support is placed at Rs 632-630 levels, said Motilal Oswal. The broking firm advised its clients to sell on rise as long as price holds below resistance.
At 1430 (GMT), the red metal price fell marginally, quoting at $8,275 per tonne in London.
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