During intraday on MCX, on April 26, copper prices rose to Rs 753.50 per kg after touching a new lifetime of Rs 754.20. In the evening session, the base metal opened after extended gains to trade at the day’s high.
The non-ferrous metal has exceeded the moving averages of 5, 20, 50, 100 and 200 days on the daily chart of the May series. The momentum indicator Relative Strength Index (RSI) is at 73.87 indicating the momentum of price rise.
The hunger for copper was supported by the United States and other countries removing their targets for greenhouse gas emission reductions, as the metal is expected to benefit from green investment in electric vehicles and renewable energy.
The US CFTC said speculators reduced copper futures and 9,864 contracts in net options to 38,273 weeks to 13 April.
Shanghai copper prices reached their highest level in 10 years, while London contracts jumped to a decade high as supply concerns and weaker dollar surged prices. Motilal Oswal said that in this week’s policy meeting, the US Fed Chief Powell may have rejected the purchase of tempering bonds.
The loss of TTML in Q4 was around Rs 288.3 crores.
Tapan Patel – Senior Analyst (Commodities), HDFC Securities, said, “The base metal complex, with most metals, was seen to be buying more strongly on demand optimism than China and the US. Copper prices had the highest turnover since the last Super Cycle by spending on green infrastructure and a weak dollar. Expectations of high demand from green technologies have led to buying in copper despite high inventions in SHFE. “
Patel expects that base metals can trade at a higher level with MCX copper. Futures have resistance near Rs 760 per kg, backed by Rs 728 per KG for short term.
The US dollar opened 0.06 percent higher at 90.89 in the evening session against rival currencies.
MCX METLDEX climbed 184 points or 1.25 percent to close at 14,926 at 19:00. The index tracks the real-time performance of major base metals.
In the futures market, copper for May delivery touched a high of Rs 754.20 on MCX and a low of Rs 741.50 per kg. The base metal has so far touched a low of Rs 658 and a high of Rs 754.20 in the current series.
Copper delivery for May rose by Rs 12.55, or 1.70 per cent, to Rs 752.45 per kg in 192 hours with a turnover of 4,979 lots. The June contract rose by Rs 14.55, or 1.97 per cent, to Rs 752.80 per kg, with a turnover of 45 lots.
The value of contracts for May and June so far is Rs 1,566.31 crore and Rs 23.61 crore respectively.
Kshitij Purohit, Product Manager, Currency & Commodities, Capitalavia Global Research Ltd said, “MCX copper has risen by more than 1 percent since the last close. Prices remain above 20-SMA and we can expect a spurt in the coming season. “
In 1336 (GMT), the price of red metal rose 2.02 percent to $ 9,742.25 per ton in London.