Copper settled up 0.82% at 418.05 closed higher boosted by some opportunistic buying and further signs that China's government is willing to step in to prop up economic growth. A call by China's central bank for the nation's biggest lenders to give priority in mortgage lending to first-time home buyers also boosted base-metal sentiment. China is the world's top consumer of copper, which is used in everything from household electronics to smartphones. As such, signs of economic growth in the country tend to be viewed as positive for end-demand. Also the US April PPI released on May 14 posted its biggest gain in about 1.5 years, causing the US dollar index to rally. Both factors limited upward room for copper prices to increase. The US CPI rose 2.1% YoY in April, up from the 1.4% in March and well above the 1.7% expected. In Germany, the Harmonized Index of Consumer Price fell by 0.3% in April and advanced by 1.1% in year-on-year terms, in line with economists’ forecasts. The euro zone industrial output declined 0.3% on the month in March. In the UK, the number of unemployed in April dropped 12,100 from March, exceeding forecast, and the ILO Unemployment Rate for the first quarter was down to 6.8%. Technically market is under short covering as market has witnessed drop in open interest by -2.45% to settled at 13914 while prices up 3.4 rupee, now Copper is getting support at 415.8 and below same could see a test of 413.4 level, And resistance is now likely to be seen at 420.3, a move above could see prices testing 422.4.

Trading Ideas:

Copper trading range for the day is 413.4-422.4.

Copper rose amid speculation demand from top consumer China will increase in the near-term.

China's economic activity showed across-the-board weakness in April, with data from output to investment and consumption all missing market expectations.

Prices have been well-supported amid indications China’s government will introduce measures to deepen reforms of the nation’s capital markets.