Commodity market outlook - Mr. Vivek Gupta - Director Research - CapitalVia Global Research Limited
London copper steadied on Friday and was on track for a fourth consecutive week of gains on Friday with tightening global supplies and economic optimism driving prices higher. Copper inventory levels in LME- registered warehouses, at 158,100 tonnes, are at their lowest in nearly six years. China's copper imports fell in June to the lowest since April 2013 as banks reduced lending for metals imports following a probe into alleged fraudulent metals financing at Qingdao port. China showed its trade performance improved in June, it missed market forecasts and suggested that Beijing will have to unveil more stimulus measures to stabilize the economy We expect copper prices to remain higher over supply constraints.
Trend of MCX Copper August future is in consolidation and also sustaining in range. For the coming week, it could face major resistance of 460/482 whereas 425/410 could be a major support in MCX Copper. For the next week trader may follow buy on lower levels strategy, if MCX Copper August future sustain above 438 levels then it could test the level of 448/460.