Copper - Feb 24, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

LME Copper prices extended gains on Tuesday, while the rest of metals ended mixed.

Copper ended higher on Tuesday, tracking overseas prices, while the rest ended lower on Tuesday.

The Dollar Index weakened on Tuesday and lent support.

Federal Reserve Chair Jerome Powell said interest rates would remain low and the Fed's bond purchases will continue at least at the current pace until they make substantial further progress towards their goals.

The roughly 24 million tonne a year refined copper market is already in deficit and was undersupplied by 589,000 tonnes in the first 11 months of 2020, the International Copper Study Group (ICSG) said.

On the supply side, Zambian copper output rose 10.8% last year to 882,061 tonnes and Philippine nickel output increased 3% to 333,962 tonnes, according to government data.

LME Copper and rest of the base metals have started higher this Wednesday morning in Asian trade.

Technically, LME Copper hit a 52 week high at $9304.25 level and further upside above $9300 levels could push prices higher. Range for the day is $9180-$9335 levels.

Domestic copper and rest of metals could open higher this Wednesday morning, tracking overseas prices.

Technically, MCX Copper February made All-time high at 711 levels from further trade above the levels will push prices higher. Resistance is at 720. Support is at 701-696 levels.

MCXMETLDEX March could see Bearish momentum where it could trade in a range of 14850-15100 levels.

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Source : Equity Bulls

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