MTECHTIPS

MTECHTIPS:-Copper dips on LME, MCX on growth concerns, firm Dollar

With the dollar strengthening against a basket of currencies and fears linger about the state of the world economy, copper prices dipped on the LME by 1% on Monday. Meanwhile, the eurozone's largest economy Germany registered a drop in industrial orders in August. The firm dollar also led to a dip in metal prices.“Technically on daily charts, India MCX Copper November contract is into a bearish mode, and I expect more correction this week in copper prices. Strong resistance is expected at Rs 438 for this week and good support at Rs 425.” “Traders should take a short sell position in copper around Rs 435 with stop loss of Rs 438 for target near Rs 425 for this week.” he added.Focus in the copper market last week had been on initial signals regarding annual contract negotiations. It was reported that Codelco had been seeking just a $5/t reduction in its 2013 physical copper premiums for Asian clients, while the European levels would likely remain flat or have a very small reduction, Barclays said.