Copper on MCX settled up 1.64% at 385.15 on U.S-led buying after data showed a surge in U.S. consumer confidence to a 16-year high. China's central bank said it would provide financial support to help manufacturers upgrade and modernize, including measures to increase the scope for insurance companies to invest in the manufacturing sector. Speculative long positions in copper were 6.6 percent of market open interest on Friday, down from a peak of 38 percent in mid-January. Workers are returning to work this week at the world's biggest copper mine in Chile after a strike that began on Feb. 9. Lost output from the strike and a long-drawn-out production restart at Escondida could amount to 230,000 tonnes, helping keep prices around $5,950 a tonne in the second quarter. China's top copper smelters have agreed to an 11 percent cut in second-quarter treatment and refining fees, after mine disruptions curbed the supply of raw material, three sources said. Hedge funds and money managers boosted their bullish position in copper futures and options by 2,231 lots to 54,680 in the week to March 21, U.S. Commodity Futures Trading Commission data showed. China's refined metals imports were sharply lower in February, by 29 pct on the year for copper to 66 pct, also spooking the market over the strength of demand. Technically market is under short covering as market has witnessed drop in open interest by -6.95% to settled at 11952 while prices up 6.2 rupees, now Copper is getting support at 379.8 and below same could see a test of 374.4 level, And resistance is now likely to be seen at 388.1, a move above could see prices testing 391.

Trading Ideas:

# Copper trading range for the day is 374.4-391.

# Copper prices gained on U.S.-led buying after data showed a surge in U.S. consumer confidence to a 16-year high.

# China's central bank said it would provide financial support to help manufacturers upgrade and modernize.

# Workers are returning to work this week at Escondida in Chile, the world's biggest copper mine, after a strike that began on Feb. 9.