Copper is expected to trade with positive momentum during the morning session on Thursday, 19 July at MCX. Copper was trading range bound in July 2012 hovering between Rs 432 per kg and Rs 417 per kg. The concerns on the demand from the China, the major metal consumer and the festering European debt crisis still dogged out in the market led the red metal to trade in range bound.
The better than expected housing market data from the US and China might ease the concerns on sluggish demand from the economies and help the investors to trade with positive momentum. Copper is likely to find support at Rs 423 per kg and Rs 420.6 per kg and resistance at Rs 427.6 per kg and Rs 429 per kg.
Copper slumped on Wednesday, 18 July at LME as the grim outlook by US Federal Reserve Chairman Ben Bernanke trumped hopes for further monetary stimulus coupled with the rekindled fears about the grouping's finances in Europe citing the German Chancellor Angela Merkel's comments pulled down the metal.
But, the constructive housing market data from the US and China pared huge losses in the metal and buoyed the sentiment during the late session.
Copper dropped by 1% at $7595 per tonne on Wednesday at LME. Comex Copper for the most active September contract buoyed by 0.5% or 2 cents at $3.474 a pound. MCX Copper rose by 0.6% or Rs 2.6 at Rs 425.7 kg and tested an intraday high at Rs 426.25 per kg and low at Rs 423.15 per kg.
The dollar index ended on a flat note at 82.96 against the basket of 6 major currencies as the mixed economic woe sin the global economy pressurized the safe haven dollar.
German Chancellor Angela Merkel's affirmed that a solution to the bloc's problems was not yet in sight which reignited worries about the euro zone, just as German lawmakers gather to vote on Berlin's contribution to a euro zone aid package for Spain's ailing banks.
Meanwhile in China, house prices 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.
In the US economic front, home construction rose 6.9% to an annual rate of 760,000 in June, better than expectations, for a 5.2% monthly gain and the highest in nearly four years. However, building permits for June fell 3.7% to an annualized level of 755,000, lower than the forecasts value of 765,000.
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