MCX Copper may note some gains tracking international exchanges, however the upside remains capped. LME copper is trading higher in early trades today after EU leaders struck a deal for a second bailout to Greece of 130 billion euros.
Also lending support is easing monetary policy by China as it cut reserve ratio requirement by 50 basis points. Prices may further seek support from weakness in US Dollar and falling stocks at LME warehouses. MCX Copper stocks at LME warehouses fell by 500 tonnes yesterday to lowest level since September 2009 while cancelled warrants hovered around 27%, signaling strong physical demand. The upside may however be capped amid lack of physical demand in China and record high stocks at SHFE warehouses. Prices will further track economic releases and its impact on global currency and equity markets. As for today, focus will be on Euro Zone Consumer Confidence. Support for February copper is seen at Rs.404 while resistance is seen at Rs.416.
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