Copper, the leader of the base metals group, declined by 0.4 percent yesterday on the LME on the back of rise in risk aversion in the global markets coupled with increase in LME copper inventories by 1.6 percent which stood at 243,425 tonnes. However, weakness in the DX restricted further downside in fall of copper prices.
On the MCX, prices declined by 0.2 percent on account of appreciation in the Indian Rupee and closed at Rs.410/kg after touching an intra-day low of Rs.409.10/kg on Wednesday. Today also it is trading in a consolidate manner. Copper is trading at 411 at the moment.
we expect base metals to trade lower on the back of rise in risk aversion in the global markets coupled with strength in the DX. Depreciation in the Indian Rupee can prevent further fall in prices.
Copper prices are expected to witness a range bound move as from 414 to 406, one can look for buying opportunity around 409 with a stop loss below 405. Fresh buying could witness above 415.
MCX Copper Trend
| Month | June |
| Support 3 | 403 |
| Support 2 | 406 |
| Support 1 | 409 |
| Resistance 1 | 412 |
| Resistance 2 | 415 |
| Resistance 3 | 418 |
| Trend | Consolidate |
