Copper on MCX settled up 0.89% at 398.25 as uncertainty over Trump's policies sent the dollar to a 1-1/2 month low while volumes were light ahead of the Chinese Lunar New Year that starts on Friday January 27, but with businesses activity likely to slow ahead of that. Copper prices can see resistance near to 402 level and prices can see downside pressure as sentiments changed after the update from The global world refined copper market showed a 48,000 tonnes surplus in October, compared with a 18,000 tonnes deficit in September, the ICSG said in its latest monthly bulletin. For the first 10 months of the year, the market was in a 64,000 tonnes deficit compared with a 89,000 tonnes deficit in the same period a year earlier, the ICSG said. World refined copper output in October was 1.98 million tonnes , while consumption was 1.93 million tonnes. Also World top copper exporter Chile is seen producing 5.79 million tonnes in 2017, a 4.3 percent increase versus a year earlier, due to increased output at BHP Billiton's massive Escondida mine, state copper commission Cochilco said on Monday. Copper production in Chile is forecast to grow by an additional 3.4% in 2018, reaching nearly 6.0 million tonnes. Production fell 3.9 percent last year versus 2015 to 5.55mtns, mainly due to reduced output at Escondida and the Anglo American Sur mine complex, said Cochilco. Tuesday’s data on euro area private sector activity will also be closely watched. Technically market is getting support at 395.5 and below same could see a test of 392.6 level, And resistance is now likely to be seen at 400.5, a move above could see prices testing 402.6.

Trading Ideas:

# Copper trading range for the day is 392.6-402.6.

# Copper gained to hold 398 level on uncertainty over Trump's policies which sent the dollar to a 1-1/2 month low.

# China's Lunar New Year holiday, starting Jan. 27, is expected to subdue metals demand as Chinese factories close, for two to three weeks.

# Top copper exporter Chile is seen producing 5.79mtns in 2017, a 4.3% increase due to increased output at BHP Billiton's massive Escondida mine.