Copper on MCX settled up 0.59% at 400.75 as the market awaits further direction amid continued strike action at the world’s largest copper mine. Supply issues dominated the base metals market, with nickel also gaining ground to reach a two-month high as the market tracked the latest plans by the Philippines to close mines on environmental grounds. Workers are striking over pay at the Escondida mine in Chile, majority-owned by BHP Billiton Ltd., while Freeport-McMoRan Inc. is locked in a standoff with the Indonesian government over permission to export copper concentrate produced at the Grasberg mine. In copper, U. S. mining giant Freeport-McMoRan Inc said on Monday that it could take the Indonesian government to arbitration and seek damages over a contractual dispute that has halted operations at its huge Grasberg mine. Representatives of Escondida, controlled by BHP Billiton , plan to attend talks with striking workers on Monday as long as the union does not interfere with a shift change for non-union employees. In the week ahead, global financial markets will focus on U. S. President Donald Trump's address to Congress on Tuesday for further details on his promises of tax reform, deregulation and infrastructure spending. This week is also peppered with a handful of Fed appearances, most importantly Fed Chair Janet Yellen on Friday. Chile’s government reported the country’s copper output was 452,035 tonnes in January, down 2.6% year-on-year, according to data. Technically market is under fresh buying as market has witnessed gain in open interest by 29.87% to settled at 13168 while prices up 2.35 rupees, now Copper is getting support at 397.1 and below same could see a test of 393.4 level, And resistance is now likely to be seen at 403.1, a move above could see prices testing 405.4.

Trading Ideas:

# Copper trading range for the day is 393.4-405.4.

# Copper prices gains as the market awaits further direction amid continued strike action at the world’s largest copper mine.

# The strike at Escondida enters its third week with no sign of resolution and the global copper market as a whole looks to be moving into deficit.

# Output also remained halted at giant copper mine Grasberg in Indonesia due to a contract dispute with the government.