Copper settled down -1.31% at 426.15 depressed by concerns about the Chinese property sector and news of increased production. An expected surplus in the second half of this year has also driven price concerns. Evidence of plentiful supplies emerged when data showed weekly copper inventories in Shanghai warehouses rose by 28.9 percent. This rise follows several companies increasing their guidance this week. On Wednesday Rio Tinto increased full year production guidance for copper. Anglo American Plc also reported higher copper output for the first half of the year.

In the United States, housing starts and building permits unexpectedly fell in June, suggesting the housing market recovery was struggling. The focus next week will be on a flash reading of China's manufacturing health, as well as U. S. inflation, new home sales and durable goods orders. In the United States, consumer sentiment dipped in early July while an index of consumer expectations weakened for a third straight month. The Thomson Reuters/University of Michigan preliminary consumer sentiment index fell to a four-month low of 81.3 in July from 82.5 in June, confounding expectations for rise to 83.0.

Technically market is under fresh selling as market has witnessed gain in open interest by 6.46% to settled at 9735 while prices down -5.65 rupee, now Copper is getting support at 423.2 and below same could see a test of 420.3 level, And resistance is now likely to be seen at 430.5, a move above could see prices testing 434.9.

Trading Ideas:

Copper trading range for the day is 420.3-434.9.

Copper settled down depressed by concerns about the Chinese property sector and news of increased production.

An expected surplus in the second half of this year has also driven price concerns.

Evidence of plentiful supplies emerged when data showed weekly copper inventories in Shanghai warehouses rose by 28.9 percent.