Copper yesterday settled up 1.31% at 408.75 as support seen from rupee weakness which breached formidable resistance of 60 to the dollar to slump to a record low, reinforcing the vulnerability of a country with limited reserves and struggling to narrow a record-high current account deficit. While Copper futures were down sharply in international market reapproaching the previous session's three-year low after a series of upbeat US data releases on Tuesday reinforced the view that Fed will begin to taper its bond purchase program in the coming months. Comex copper prices fell to $2.985 a pound on Tuesday, the weakest level since July 20, 2010, amid growing fears over a cash crunch in the Chinese financial system. Meanwhile, concerns the Fed could taper down its bond purchases amid increasing signs of a recovery in the US economy also weighed. US consumer confidence rose to highest level since January 2008 in the current month, while another report showed that US new home sales rose to an almost five year high May. Bernanke said last week that the central bank could begin tapering asset purchases by the end of this year if the economy continues to pick up. Later in the day, the US Commerce Department is scheduled to release the third estimate of GDP for the first quarter. Prices have been under heavy selling pressure in recent sessions as a combination of concerns over a deepening slowdown in China and fears over an end to the Federal Reserve's asset purchase program weighed. Technically market is getting support at 401.30 and below same could see a test of 394.00 level, And resistance is now likely to be seen at 413.20, a move above could see prices testing 417.70.

Trading Ideas:

Copper trading range for the day is 394-417.7.

Copper gained on rupee weakness after prices pressured on concerns about the outlook for demand from China.

Also hitting sentiment were growing expectations that improving U. S economic conditions could prompt Fed to rein in its stimulus programme

Draghi said ECB was nowhere near exiting its accommodative monetary policy while seeing gradual recovery in the region by the end of the year.