Commodity Radar: tariff problems, delivery problems keep copper accessible; Time to buy dips for these goals, says Religare experts

Copper contracts on the MCX acted lower on Tuesday despite a positive trade in this base metal on the international markets.

The contracts of Augustus float on RS 885.95, a decrease RS 1.60 or 0.2% around 2 p.m.

Copper contracts on the Comex traded at $ 4.44 per LB, marginal an increase of 0.11%, while the three -month LME copper contracts dealt around $ 9,687 per ton.

In commentary on current trends, Ajit Mishra, senior vice president – said research at Religare Broking, that the Indian copper futures have recently been sharp because of the American tariff news, despite the limited exposure of India.

“The US had imposed a rate of 50% on semi-finished copper products last week, with effect from 1 August, with reference to the concern about national security. This led Copper Futures on MCX to fall 4%, record days in the neighborhood of RS 861.70/kg for the August 66.45/KG.

According to him, the Fundamentals will continue to support the market in the long term, taking into account the tightening of the delivery situation. “The available shares had fallen by 76% since mid -February, powered by accelerated freight movements to the US in the midst of an ongoing investigation into the import of copper. Tech View
Mishra said that he sees a mixed bias for copper in the technical maps, although there is a short -term shit potential, along with somewhat momentum positive in the medium term.

Copper weekly graph

The Religare analyst recommends a buy-on-dips strategy near the RS 879-881 support region with a strict stop loss under RS 870 and the focus on RS 900–905 is reasonable, provided that the resistance of 889/890 is decided.

However, if the prices fall under RS 870, the risk of further downward increase will increase and under this scenario, copper can go lower to the level of 860/855, he suggested.

Also read: Commodity Radar: Gold’s attraction is growing in the midst of weak US Payroll data, tariff shell. Here is strategy to act

(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)