MUMBAI (Commodity Online): MCX copper for
February delivery gained in the morning session and touched an intra-day
high of Rs 442.80 as rupee depreciated by more than 0.35%. Short
covering in early trading session too contributed to the trend. The
commodity is trading at Rs.440.60 a kilogram, a loss of 0.16% as of 2.40
PM IST against the previous close.
Overall sentiments for base metals look sideways to bullish for today's trading session.
Intra-day strategy
Copper futures may find major support at Rs.440, according to Amrita Mashar, Research Analyst at Commodity Online.
“MCX copper prices are likely to find major support at Rs.440 and below that level it could test Rs.438; resistance for contract is set to be above Rs.445 and Rs.448. Intraday traders can buy copper near Rs.440 with stop loss at Rs.438 for target near Rs.443.” Amrita said.
Short-term outlook
Copper is expected to face selling pressure near Rs.445 and until the commodity does not close above that level, short term outlook will remain bearish. “On close below Rs.438, copper prices are expected to move towards 432 levels in short term time period.” Amrita added.
“The medium-term outlook is not clear for the time being...” Amrita concluded.
Chinese spending on power-grid
Meanwhile reports suggest that China is intending to step-up its power-grid infrastructure.
Spending on China’s power grid, a major consumer of copper and aluminium, is forecast to rise at a faster pace in 2013.
The State Grid Corporation of China has increased its 2020 target to 94,500km of UHV lines laid, compared with 78,000km in the previous target, an increase of 21%, Barclays said in a report.
The China Securities Journal recently reported that the State Grid has set its 2013 spending target 4% higher y/y, after lukewarm growth in 2012 of 1.3%.
The power-grid expansion, if materialises would help copper prices to go up in the long term, experts believe.
Overall sentiments for base metals look sideways to bullish for today's trading session.
Intra-day strategy
Copper futures may find major support at Rs.440, according to Amrita Mashar, Research Analyst at Commodity Online.
“MCX copper prices are likely to find major support at Rs.440 and below that level it could test Rs.438; resistance for contract is set to be above Rs.445 and Rs.448. Intraday traders can buy copper near Rs.440 with stop loss at Rs.438 for target near Rs.443.” Amrita said.
Short-term outlook
Copper is expected to face selling pressure near Rs.445 and until the commodity does not close above that level, short term outlook will remain bearish. “On close below Rs.438, copper prices are expected to move towards 432 levels in short term time period.” Amrita added.
“The medium-term outlook is not clear for the time being...” Amrita concluded.
Chinese spending on power-grid
Meanwhile reports suggest that China is intending to step-up its power-grid infrastructure.
Spending on China’s power grid, a major consumer of copper and aluminium, is forecast to rise at a faster pace in 2013.
The State Grid Corporation of China has increased its 2020 target to 94,500km of UHV lines laid, compared with 78,000km in the previous target, an increase of 21%, Barclays said in a report.
The China Securities Journal recently reported that the State Grid has set its 2013 spending target 4% higher y/y, after lukewarm growth in 2012 of 1.3%.
The power-grid expansion, if materialises would help copper prices to go up in the long term, experts believe.
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