Copper on MCX settled up 2.32% at 409.6 as investor sentiment was bolstered by China's announcement of a new round of trade talks with the United States. But the market is facing its biggest weekly drop in almost two months on worries over slowing growth in top industrial metals consumer China.
China’s central bank said it was cutting the ratio of cash that banks must hold as reserves by 100 basis points (bps), as it looks to reduce the risk of a sharper slowdown in the world’s second-biggest economy. The cut in banks’ reserve requirement ratios (RRR) is the first in 2019 and the fifth in a year by the People’s Bank of China (PBOC) as the economy faces its weakest growth since the global financial crisis and mounting pressure from U.S. tariffs.
Technically market is under short covering as market has witnessed drop in open interest by -18.85% to settled at 19418 while prices up 9.3 rupees, now Copper is getting support at 404.5 and below same could see a test of 399.3 level, And resistance is now likely to be seen at 412.4, a move above could see prices testing 415.1.
Trading Ideas:
* Copper trading range for the day is 399.3-415.1.
* Copper rose as investor sentiment was bolstered by China's announcement of a new round of trade talks with the United States.
* But the market is facing its biggest weekly drop in almost two months on worries over slowing growth in top industrial metals consumer China.
* China and the US will hold vice- ministerial level trade talks in Beijing on Jan. 7-8, as the two sides look to end a dispute that is inflicting increasing pain on both economies.
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