Copper on MCX settled up 0.73% at 381.90 edged higher reversing losses that led prices to trade at a one-week low, as stocks recovered slightly and investors closed out short positions. Support seen after London Metal Exchange copper edged up 0.1 percent to $5,818 a tonne adding to a 0.6 percent gain from the previous session when prices plumbed their lowest since March 10 at $5,715 a tonne as broader investor sentiment revived.
In Peru, a 1,300-worker strong strike at Freeports' Cerro Verde mine which recently underwent a massive expansion is set to end on Thursday on government orders, but the union vowed to down tools again on Friday. Workers walked off the job 11 days ago and according to the union production at the mine is running at 50% after Freeport brought contract workers onto the site.
While sentiments still remain weak after the update that Freeport-McMoRan's Indonesian operation has resumed copper concentrate production at its Grasberg mine. The mine was closed for more than a month. Meanwhile, it is being reported that talks to resolve a strike at the World's biggest copper mine in Chile are set to resume. Now market players will focus on a handful of Fed speakers in the week ahead, including Chair Janet Yellen on Thursday, as they look for more clues on the timing of the next U.S. rate hike.
Technically market is under short covering as market has witnessed drop in open interest by -5.58% to settled at 13102 while prices up 2.75 rupees, now Copper is getting support at 377.8 and below same could see a test of 373.7 level, And resistance is now likely to be seen at 384.5, a move above could see prices testing 387.1.