Copper settled up 0.84% at 438.90 as a rally in China's stock markets indicated improving prospects for demand in the world's largest consumer of the industrial metal, although growing global supplies kept investors cautious. But copper investors were cautious however, given expectations for increased supply this year. Also China's powerful economic planning agency said earlier Beijing would increase investment in areas including the property sector, while authorities would advance wide-ranging economic reforms such as changing the fiscal and pricing systems. Freeport-McMoRan Inc's Indonesian unit will resume copper concentrate exports, the local chief executive said, after it resolved a six-month tax dispute with the government. Limiting losses in copper, U.S. job growth slowed a bit in July and the unemployment rate unexpectedly rose, pointing to slack in the labour market, which could give the Federal Reserve room to keep interest rates low for a while. Also, manufacturing activity in China and most of Asia gathered pace in July, while expansion slowed in Europe but remained healthy in the United States. There is widespread risk aversion in global markets due to political tensions, with the euro zone's sentiment index slumping unexpectedly in August as EU sanctions on Russia weighed on growth expectations. Chinese trade data for July will be released on Friday, and copper imports may be low again as trade houses find it difficult to get finance to store metal after suspected fraud at China's Qingdao port earlier this year. Technically market is under fresh buying as market has witnessed gain in open interest by 17.5% to settled at 11052 while prices up 3.65 rupee, now Copper is getting support at 435.2 and below same could see a test of 431.5 level, And resistance is now likely to be seen at 441, a move above could see prices testing 443.1.

Trading Ideas:

Copper trading range for the day is 431.5-443.1.

Copper gained as a rally in China's stock markets indicated improving prospects for demand in the world's largest consumer of the industrial metal

But copper investors were cautious however, given expectations for increased supply this year.

Investors worried that growing inventories of the industrial metal in Shanghai warehouses pointed to a slowdown in demand.