Technically Copper market is under fresh selling as market has witnessed gain in open interest by 6.02% to settled at 3945 while prices down 6.85 rupees.
Now MCX Copper is getting support at 707.5 and below same could see a test of 704.2 levels, and resistance is now likely to be seen at 716.2, a move above could see prices testing 721.6.
Copper yesterday settled down by 0.95% at 710.7 as investors reduced risk exposure amid uncertainty caused by a power curtailment and ahead of a major holiday in China.
Power restrictions in China have hurt supplies of some metals in recent months, but electricity curbs recently spread to more downstream sectors and dampened manufacturing, hurting the demand for metals.
China is going on a week-long holiday starting Oct. 1, with investors squaring positions ahead of the break to reduce exposure in a volatile market environment.
The People’s Bank of China injected a total CNY 100 billion of 14-day reverse repos at an interest rate of 2.35 percent on September 29th 2021, the same as in the previous day, and marking the ninth straight day of cash injections in the financial system.
The central bank reinforced the moves aim to maintain liquidity in the banking system ahead of the National Day holidays. The moves are also seen as a sign the authorities are willing to support the financial system and avoid a big collapse and contagion due to the Evergrande crisis.
The global world refined copper market showed a 90,000 tonnes deficit in June, compared with a 4,000 tonnes surplus in May, the International Copper Study Group (ICSG) said in its latest monthly bulletin.
Trading Ideas:
–Copper trading range for the day is 704.2-721.6.
–Copper prices fell as investors reduced risk exposure amid uncertainty caused by a power curtailment and ahead of a major holiday in China.
–The People’s Bank of China injected a total CNY 100 billion of 14-day reverse repos at an interest rate of 2.35 percent on September 29th 2021.
–The central bank reinforced the moves aim to maintain liquidity in the banking system ahead of the National Day holidays.
Courtesy: Kedia Commodities
Source: Comodity Online
