MCX Copper Futures Flat At Rs 593.60 Per Kg; Bearish Momentum Likely To ContinuePage Visited: 16
Copper prices were steady at Rs 593.60 per kg on February 2 as manufacturing data from top consumer China raised the prospect of slowing demand growth. The base metal extended loss after a gap-up open tracking firm dollar in the evening session.
Copper stocks in LME-registered warehouses, at 74,275 tonnes are close to last September’s 15-year trough. Cancelled warrants – metal earmarked for delivery – at 33 percent suggest more metal is due to leave.
The spread between LME cash to three months has flipped to nearly $7 backwardation.
The US dollar traded firm at 91.11, or up 0.09 percent, in the evening session.
Neha Qureshi, Technical Research Analyst at Reliance Securities said, “LME Copper is trading below its 21 as well as 50 Daily Moving Average where it has reached to its multiple support zone near $7,700-$7,730 levels. So it could trade sideways to marginal downside momentum support is at $7,700-$7,570 levels. Resistance is at $7770-$7810 levels.”
“MCX Copper February is trading below its 50-DMA which is placed at 600 levels indicating for Bearish trend to continue up to 587-584 levels. Resistance is at 593-597 levels,” Qureshi said.
She advised her clients to sell February Copper at Rs 593.594 with a stop loss of Rs 597 and for a target of Rs 587.
MCX iCOMDEX Base Metal Index declined 16.74 points, or 0.12 percent, at 13,390.10 at 18:45.
In the futures market, copper for February delivery touched an intra-day high of Rs 596.45 and a low of Rs 588.15 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 629.75.
Copper delivery for February marginally slipped Rs 0.30, or 0.05 percent, to Rs 593.60 per kg at 18:48 hours with a business turnover of 3,808 lots. The same for March contract fell Rs 0.60, or 0.10 percent, to Rs 592.75 per kg with a turnover of 372 lots.
The value of February and March’s contracts traded so far is Rs 1,468.52 crore and Rs 42.83 crore, respectively.
Kshtij Purohit, Product Manager Currency & Commodities, CapitalVia Global Research Ltd, said, “MCX Copper February is sustaining below 50-SMA Resistance is at Rs 600-605 levels. We expect the market to trade with bearish momentum in the upcoming session where intra-day support is at Rs 589-584 levels.
At 1322 (GMT), the red metal price was down 0.97 percent quoting at $7,746.50 per tonne in London.