Copper on MCX settled down -0.34% at 326.70 as trader preferred to sell despite the expectations of a revival in Chinese demand. Last week prices got support after Chinese economic data indicated a firmer tone to the housing market and a revival in factory activity. Three-month copper on the LME slipped 0.3 percent to $4,840.50 a tonne as sentiments faded for the improvements within China's copper economy, coupled with the lack of further monetary easing. Other metals ended higher on the back of a weaker dollar. The U.S currency fell after comments from a top Bank of Japan official reinforced views that the central bank was unable to take steps that would weaken the yen. Now in the week ahead, market players will be turning their attention to fresh comments from Federal Reserve Chair Janet Yellen amid ongoing uncertainty over the timing of the next U.S. rate hike. Meanwhile, investors will be focusing on a pair of speeches from European Central Bank President Mario Draghi for fresh hints on whether the ECB will step up monetary stimulus in the coming months to boost inflation and prop up the economy. In addition, remarks by Bank of Japan Governor Haruhiko Kuroda will be eyed in wake of last week's decision by the BOJ to modify its policy framework. Technically market is under fresh selling as market has witnessed gain in open interest by 0.92% to settled at 24425 while prices down -1.1 rupee, now Copper is getting support at 325.3 and below same could see a test of 323.7 level, And resistance is now likely to be seen at 328, a move above could see prices testing 329.1.

Trading Ideas:

Copper trading range for the day is 323.7-329.1.

Copper edged lower as LME prices dropped by 0.3%, with losses limited by expectations of a revival in Chinese demand.

According to WBMS, in January-July this year, global copper supply shortage of 151,000 tons, the supply shortage gap was about 197,000 tons.

Improvements within China's copper economy, coupled with the lack of further monetary easing, cap the downside for copper.