MCX-Copper (₹381)

The MCX-Copper contract still remains in its consolidation phase. The contract has been range-bound between ₹365 per kg and ₹415 per kg over the last four months. A breakout on either side of ₹365 or ₹415 will decide its next move. The contract is currently hovering near the lower end of the range. A dip to test ₹365 is likely in the coming days. If the contract manages to bounce from ₹365, the range will remain intact and it can rise to ₹400 and ₹415 levels once again. But if the copper futures contract breaks below ₹365 decisively, it can fall to ₹350 or ₹345. The level of ₹345 is a key support and further fall below this level is less likely. A subsequent reversal from the ₹350-345 support zone can take the contract higher to ₹365 and ₹370 levels once again. The contract will gain fresh momentum only if it breaks above ₹415 decisively. Such a break can take it higher to ₹428 initially. A further break above ₹428 will pave the way for the next targets of ₹450 and ₹460. It will also increase the likelihood of the contract revisiting ₹500 levels from a medium to long-term perspective.

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