mcxtips

Weekly Price Performance
• Base metals traded on a negative note last week with a mixed set of factors providing
direction to prices. Despite positive economic data from the US, Euro zone, UK and
China over the week, mixed set of sentiments towards the end of the week, capped
sharp decline in prices.
• Copper prices touched a weekly low of $7227/tonne in the last week and closed the
week at $7353/tonne with losses of 0.3 percent.
• On the MCX, the near-month copper contract rose by more than 2 percent due to
Rupee depreciation and touched a high of Rs 483.2/kg in the last week.
• Month-to-date, copper prices on the LME and the MCX are up by 7 percent and 13
percent respectively. Gains on the MCX are higher mainly due to the weakness in the
Rupee.
Copper Inventories
• On the LME last week, copper inventories declined around 3.4 percent to 564,225
tonnes as on 23rd August 2013 from 584,075 tonnes in prior week.
• Shanghai Copper inventories fell around 3.6 percent to 156,100 tonnes for the week
ending on 23rd August 2013.
Factors that led to downside in Copper prices
• Weak marketsentiments and a stronger DX.
• However, positive economic data from major economies cushioned sharp fall.
Outlook
• Copper prices are expected to trade on a positive note during the week on the back of
expectations of rise in US GDP coupled with weakness in the DX. Additionally, global
refined copper production showed a deficit of 17000 tonnes in May for the first time
after seven months, will also support an upside. The Rupee factor will be additionally
supportive to prices in the Indian markets,.
Weekly Technical Levels
• LME Copper: Support $7260/$7130 Resistance $7460/$7540. (CMP: $7353)
• Buy MCX Copper August between 473-471, SL-468, Target -485. (CMP: Rs 475.05)