(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
LME Copper prices ended weaker on Thursday, but losses were capped by a lower dollar and sliding stocks in London Metal Exchange registered warehouses.
Copper and Zinc on MCX ended lower, while the rest of the metals ended higher on Thursday.
Stocks of copper in LME warehouses at 91,150 tonnes and have fallen by 50% since last October and are at their lowest since September.
Cancelled warrants, metal earmarked for delivery is at 40% suggest more copper is likely to leave LME warrant. This has fuelled worries about copper availability on the LME market.
Downside also remained limited as the U.S Dollar remained weak on Thursday.
Weighing on the market was concern that copper's demand prospects could be threatened by rising new COVID-19 cases in China.
Other metals ended mixed with Nickel and Aluminium ended higher, while Lead and Zinc ending in the red.
LME Copper and other metals prices have started in the red this Friday morning in Asian trade amid demand concerns due to rise in cases in China.
The U.S. Dollar extended losses this Friday morning in Asian trade and capped downside.
Technically, LME Copper is holding above the strong support of 21-Daily Moving Average at $7940 levels indicating a positive momentum up to $8075-$8098 levels. Support is at $8015-$7960 levels.
Domestic copper could open higher this Thursday morning, tracking overseas prices. Other metals could start with gains this Thursday morning, tracking overseas prices.
Technically, MCX Copper January holds an immediate support near 609-607 levels from where prices could bounce back up to 613-616 levels.
MCXMETLDEX February ended on a positive note above 13800 levels indicating a positive momentum in the counter.
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