Copper on MCX settled down -1.29% at 386.80 as pressured by the sudden surge of supply into the London Metal Exchange’s warehouses. LME copper stocks surged by 38,825 tonnes across mostly Asian warehouses, data showed on Monday, following a bumper build in weekly Shanghai Futures Exchange inventories on Friday. On-warrant copper inventories in London Metal Exchange warehouses - those not earmarked for shipment and availa ble to investors - have soared by 74 per cent this week after inflows into mostly Asian depots, LME data showed. On Friday a weekly 23,974-tonne build in Shanghai Futures Exchange stocks took total inventories to just shy of 320,000 tonnes, the most since last April. Copper on the London Metal Exchange ended with more that 1 percent losses in the previous session when it struck $5,835 a tonne, the weakest since Feb. 10. Copper led the metals lower, as the market had to digest a huge inflow of metal into LME warehouses. Almost 39,000 tonnes were loaded into Asian warehouses, which raised concerns about demand in the region. Also on Friday, a weekly 23,974-tonne build in SHFE stocks took total inventories to just shy of 320,000 tonnes, the most since last April. Technically market is under fresh selling as market has witnessed gain in open interest by 9.28% to settled at 14932 while prices down -5.05 rupees, now Copper is getting support at 383.9 and below same could see a test of 381 level, And resistance is now likely to be seen at 391.1, a move above could see prices testing 395.4.

Trading Ideas:

Copper trading range for the day is 381-395.4.

Copper prices dropped after heavy inflows into London Metal Exchange (LME) warehouses doused supply concerns from disruptions at major mines.

Consensus is growing that the drop in mine supply matched with a pick-up in global demand will elevate prices.

Workers at Cerro Verde mine plan to start a five-day strike on Friday to demand better labor conditions, a union representative said