Copper on MCX settled down -0.73% at 396.7 as traders unwound speculative positions on doubts that the post U.S. election rally has much further to run. However downside were limited as data showed that the US and China are growing at a multi-year high pace in manufacturing and jobs creation. Adding to the downturn in sentiment was news that the Chinese government will implement a new commission to oversee new infrastructure projects – new projects are unable to start until they have carried out a review on energy usage to reduce infrastructure energy waste. LME stocks were down 2,650 tonnes at 234,025 tonnes, the lowest level since August 22. Cancelled warrants at 96,350 tonnes were up 2,200 tonnes – on-warrant material at 137,675 tonnes is the lowest since July. China’s official manufacturing PMI of 51.7 for November was the highest reading in two years. The Caixin manufacturing PMI for November at 50.9 was in line with expectations but lower than October’s reading of 51.2. Throughout the year, the People’s Bank of China (PBoC) has injected billions of yuan into the economy to stabilize growth and ensure the country expands at a clip of 6.5-7%. The market was also taking heart from signs U.S. factory activity accelerated to a five-month high in November amid a pickup in new orders and production, suggesting that the manufacturing sector was regaining its footing. Technically market is under fresh selling as market has witnessed gain in open interest by 3.79% to settled at 14971 while prices down -2.9 rupee, now Copper is getting support at 393.9 and below same could see a test of 391.2 level, And resistance is now likely to be seen at 398.8, a move above could see prices testing 401.

Trading Ideas:

Copper trading range for the day is 391.2-401.

Copper eased as traders unwound speculative positions on doubts that the post U.S. election rally has much further to run.

Adding to the downturn in sentiment was news that the Chinese government will implement a new commission to oversee new infrastructure projects.

However downside were limited as data showed that the US and China are growing at a multi-year high pace in manufacturing and jobs creation.