Copper settled down -0.13% at 434.45 as pressure seen amid profit booking after prices gained as growing optimism over the health of the U.S. economy supported. Downside also seen supported underpinned by shrinking supply and improving prospects for global growth. LME copper prices have rallied more than seven percent since mid June to above the $7,000 a tonne mark, driven by a lack of supply and a cheerier chart picture that has encouraged fund buying. China's annual consumer inflation came in slightly below market expectations in June, cooling to 2.3 percent from May's 2.5 percent, leaving scope for more stimulus measures from Beijing as it tries to stabilise the economy. China's government has unveiled a series of modest stimulus measures in recent months to give a lift to economic growth, which dipped to an 18-month low of 7.4 percent in the first quarter, China's slowest annual growth since the third quarter of 2012. Prices are now inching towards the February top of $7,220, which would open the way to levels last seen in late January. Dwindling copper supplies have underpinned prices. The global refined copper market is expected to see a deficit in 2014, versus earlier projections of a surplus, on strong demand and lower operating rates at smelters in top producer China. Technically market is under long liquidation as market has witnessed drop in open interest by -7.45% to settled at 11113 while prices down -0.55 rupee, now Copper is getting support at 432.1 and below same could see a test of 429.7 level, And resistance is now likely to be seen at 437.5, a move above could see prices testing 440.5.

Trading Ideas:

Copper trading range for the day is 429.7-440.5.

Copper settled flat as pressure seen amid profit booking after prices gained as growing optimism over the health of the U.S. economy supported.

Prospects for economic recovery gathered pace following last week's encouraging U.S. jobs data and upbeat factory numbers from China.

Favourable fundamentals include inventory levels in LME warehouses, which, at 158,050 tonnes, are at their lowest in nearly six years.