Copper settled up by 0.49% at 399.95 supported by predictions of greater demand from China and higher oil prices. Prices recently seen supported boosted by Chinese funds and local retail investors because of the falling yuan. The trigger for November's rise was Republican candidate Donald Trump winning the U.S. presidential election, which many expect could mean large amounts of infrastructure spending and higher demand for commodities. Weighing on metals was the potential for a cash crunch in China as yuan borrowing costs in Shanghai surged to a two-month high. Also undermining sentiment was regulators stepping in to curb speculation with position limits, higher margins and transaction costs. Exchange inventories of copper are flat, there is a lot more smelting capacity coming on, which could be bearish. People's interpretations of fundamentals have been following prices rather than the other way round. Copper is still on course for a rise of nearly 20 percent this month, its largest since April 2006. The U.S. economy grew faster than initially estimated in the third quarter, notching up its best performance in two years, buoyed by strong consumer spending. Japan's industrial output rose 0.1 percent in October from the previous month and manufacturers say production likely bounced sharply this month, preliminary government data showed on Wednesday. Chilean government reported November 29 the country’s copper output dropped 11.1% year-on-year to 445,117 tonnes in October. Technically market is under fresh buying as market has witnessed gain in open interest by 45.87% to settled at 13445 while prices up 1.95 rupee, now Copper is getting support at 391.4 and below same could see a test of 382.9 level, And resistance is now likely to be seen at 405.9, a move above could see prices testing 411.9.

Trading Ideas:

Copper trading range for the day is 382.9-411.9.

Copper gained supported by predictions of greater demand from China and higher oil prices.

However upside seen limited as the potential for a cash crunch in China as yuan borrowing costs in Shanghai surged to a two-month high.

Chilean government reported November 29 the country’s copper output dropped 11.1% year-on-year to 445,117 tonnes in October.