Copper settled down -1.3% at 467.25 despite indications that the Chinese economy is strengthening. Official data released earlier showed that Chinese industrial production rose 10.4% in August, beating expectations for a 9.9% increase and accelerating from a 9.7% gain in July. The upbeat report added to optimism over China's economic outlook after trade data released over the weekend showed that exports rose more-than-expected in August. Meanwhile, investors continued to speculate over the timing of the Federal Reserve's widely expected reduction in monthly bond purchases following last week's weaker-than-forecast US jobs report. Traders have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. The central bank is scheduled to meet September 17-18 to review the economy and assess policy. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Meanwhile China's copper import data runs counter to the recent economic data for August, which indicates ongoing 20% yoy growth in investment, a potential recovery in power output and strong industrial production and manufacturing growth. If China's property, infrastructure and manufacturing sectors continue to expand, market can expect China's copper demand to lift and copper prices to remain supported. Technically market is under long liquidation as market has witnessed drop in open interest by -4.72% to settled at 17495 while prices down -6.15 rupee, now Copper is getting support at 463.8 and below same could see a test of 460.2 level, And resistance is now likely to be seen at 472.2, a move above could see prices testing 477.

Trading Ideas:

Copper trading range for the day is 460.2-477.

Copper dropped on concerns over improved supplies and uncertainty over when Fed will trim its stimulus programme

The trend of rising stocks is leading investors to fret that the copper market surplus is widening.

The data at the weekend showed China's exports rose by a forecast-beating 7.2 percent in August from a year earlier.