Copper recovered a little bit and settled 0.79% up at 420 but still trading under pressure after Italy saw borrowing costs surge to the highest level since Dec at an auction of short-term govt debt earlier in the day. Investors also remained cautious ahead of EU summit, amid fading hopes for a meaningful result. Earlier in the week, German Chancellor quashed hopes that the euro zone could issue joint euro bonds, saying the idea was "economically wrong" and "counterproductive." Copper’s losses were limited amid growing expectations for near-term stimulus from Beijing. According market source China may introduce “more proactive” policies to ensure stable growth. The government may expand infrastructure investment, fine-tune monetary policies and reduce taxes, according to the newspaper. Copper prices have been on a rapid decline since the start of May, losing nearly 14% amid growing fears over an escalating debt crisis in the euro zone and a deeper than expected slowdown in China. A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of debt crisis in the euro zone. For today's session market is looking to take support at 417, a break below could see a test of 413.9 and whereas resistance is now likely to be seen at 422.2, a move above could see prices testing 424.3.

COPPER

Copper trading range for the day is 413.9-424.3.

Copper recovered a little bit but still trading under pressure after Italy saw borrowing costs surge

China may introduce “more proactive” policies to ensure stable growth.

Slowdown in China would impair a global expansion that is already faltering due to debt crisis in euro.

Warehouse stock for Copper at LME was at 254875mt that is up by 1625mt.

SELL COPPER JUNE @ 420 SL 422.50 TGT 418.50-415.60.MCX