Copper is likely to accentuate during the morning session on Wednesday, 18 July 2012, as the U.S. Federal Reserve Chairman Ben Bernanke's few concrete hints of future stimulus measures for the world's largest economy and the rise in Chinese home prices might help the investors to obtain some gains. Copper is likely to find support at Rs 420.6 per kg and Rs 419.2 per kg and resistance at Rs 426.6 per kg and Rs 429 per kg.

House prices in China increased marginally in June from a month earlier, as per the National Bureau of Statistics. Out of the 70 major cities surveyed by the NBS, only 21 recorded a month-on-month decline in home prices in June compared to 40 in May

But the lingering worries over the global economic growth citing the Bernanke's bleak picture of U.S. economic prospects coupled with the euro zone festering debt problems and China struggling with slow growth might cap the gains.

Copper snapped earlier session losses and buoyed on Tuesday, 17 July 2012 at LME as Federal Reserve Chairman's hints for future stimulus spread positive momentum in the market and also the sanguine economic data from the US that showed pick up in the industrial production triggered gains in the metal.

Copper buoyed by 0.5% at $7675 per tonne on Tuesday at LME. Comex Copper for the most active September contract edged down by 0.9% or 3 cents at $3.4555 a pound. MCX Copper dropped by 0.5% or Rs 2.2 at Rs 423.1 kg and tested an intraday high at Rs 427.8 per kg and low at Rs 422 per kg.

The dollar index dropped by 0.2% at 82.98 against the basket of 6 major currencies as the rise in euro and other riskly assets pressurized the safe haven dollar.

Fed Chairman Ben Bernanke on Tuesday offered a gloomy view of the U.S. economy's prospects, but provided few concrete clues on whether the U.S. central bank was moving closer to a fresh round of monetary stimulus.

In US economic front, consumer prices were flat at 0.2% in June, in line with expectations, as energy costs continued to fall. Investors have said the Fed might be less hesitant to roll out additional stimulus measures if inflation is lower.

Meanwhile, Industrial production picked up in June, rose 0.4%, slightly more than the forecasts of 0.2% drop. Capacity utilization increased slightly to 78.9% but fell short of expectations of 79.2.

The National Association of Homebuilders reported that the July Housing Market Index increased to a reading of 35. Analysts had expected the index to rise to 30 after reading 29 in the previous month.

China's refined copper production rose 7% to 518,000 tonnes in June 2012 on m-o-m basis, recovering from a three-month low of 484,000 tonnes in May and matching a record high set last August, as smelters bet on improving demand in the second half as the government takes steps to boost the economy.

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