Technically Copper market is under long liquidation as market has witnessed drop in open interest by 1.53% to settled at 4249 while prices down 0.1 rupees.
Now MCX Copper is getting support at 723 and below same could see a test of 715.4 levels, and resistance is now likely to be seen at 735.3, a move above could see prices testing 740.
Copper yesterday settled down by 0.01% at 730.4 as data from China, the biggest consumer, pointed to slowing economic growth and therefore weaker demand for metals.
Factory output in China grew faster than expected in November, but investment growth slowed and a downturn in the property market persisted. Meanwhile, more than a dozen companies said they had suspended production in coronavirus-hit parts of Zhejiang province in response to new COVID-19 curbs.
China’s government has said it will focus on stabilising the economy, and the central bank injected funds into the financial system. Peru’s government failed to host a planned meeting between the Las Bambas copper mine and a local community blocking the road from the mine.
December is the fiscal year-end for most enterprises, and market liquidity tightened. A meeting held by the Political Bureau of the Central Committee at the beginning of December set the tone of easing monetary policies next year.
The People’s Bank of China decided to reduce the RRR by 0.5 percentage point, which will release about 1.2 trillion yuan of funds to the market. After taking into account the MLF due on December 15, the RRR cuts will bring a net liquidity injection of 250 billion yuan.
Trading Ideas:
–Copper trading range for the day is 715.4-740.
–Copper fell as data from China, pointed to slowing economic growth and therefore weaker demand for metals.
–Factory output in China grew faster than expected in November, but investment growth slowed and a downturn in the property market persisted.
–China’s government has said it will focus on stabilising the economy, and the central bank injected funds into the financial system.
Courtesy: Kedia Commodities
Source: Comodity Online
