Copper settled flat at 441.40 but setiments remain weak as investors worried about weak demand in China and about the adjustment of the Chinese market to a drop in London prices when it reopens on Friday. Copper prices have been under heavy selling pressure in recent weeks as mounting concerns over the global economy dampened demand for growth-linked assets. The industrial metal is sensitive to the economic growth outlook because of its widespread uses across industries. Prices have fallen 4 percent since January. Chinese markets have been closed since last Friday for the Lunar New Year celebrations and are due to reopen on Friday. Also recent soft Chinese factory data has prompted caution about the outlook for economic growth and demand for copper. Losses in copper were capped, however, as data showing dwindling supplies of copper stocks raised concerns about immediate availability and lent support to prices. The figures showed stocks in LME-registered warehouses were at their lowest level in a year at 311,225 tonnes. US economic data on Wednesday also provided some support to the market, showing growth picked up in the dominant US service sector in January. Technically market is under short covering as market has witnessed drop in open interest by -2.29% to settled at 12152 while prices up 0.25 rupee, now Copper is getting support at 440.1 and below same could see a test of 438.8 level, And resistance is now likely to be seen at 443.8, a move above could see prices testing 446.2.

Trading Ideas:

Copper trading range for the day is 438.8-446.2.

Copper prices settled flat giving up all of its gains as investors worried about weak demand in China

New orders for US factory goods rose for a third month in December, easing concerns about an abrupt slowdown in manufacturing.

Meanwhile data showing dwindling supplies of copper stocks, which raised concerns about immediate availability, also lent support to prices.