Copper on MCX settled down -0.63% at 404.4 as the dollar strengthened, with trading volumes lean as the week-long Lunar New Year holiday kicks off in top metals consumer China. However downside seen limited buoyed by expectations that supply disruptions could tighten the market. LME copper prices touched $5,981.50 on Thursday, its strongest since Nov. 28 on the potential for reduced output from a possible labour strike in Chile and a Freeport-McMoRan, mine in Indonesia. On the demand side, copper is up 15 percent since President Donald Trump won U.S. elections in November with promises of economic growth, tax cuts and infrastructure build. But Menke said the price of copper could fall because U.S. infrastructure is not significantly copper-intensive. The dollar hit a one-week high on Friday on expectations that Trump would deliver on his economic growth, making metals priced in the greenback more expensive for holders of other currencies. Freeport-McMoRan, the world's biggest listed copper miner, warned it would need to start slashing output at its Indonesia mine to about 40 percent of capacity if it fails to get a government export permit. At BHP Billiton-run Escondida in Chile, the world's biggest copper mine, unionised workers on Tuesday rejected the firm's latest wage offer and asked workers to vote for a strike and prepare for an extended conflict. Meanwhile, China is largely out of the market this week ahead of the Chinese New Year holidays. Technically market is under long liquidation as market has witnessed drop in open interest by -3.66% to settled at 18818 while prices down -2.55 rupees, now Copper is getting support at 401.2 and below same could see a test of 397.9 level, And resistance is now likely to be seen at 406.4, a move above could see prices testing 408.3.

Trading Ideas:

Copper trading range for the day is 397.9-408.3.

Copper prices ended with losses as the dollar strengthened, with trading volumes lean as the week-long Lunar New Year holiday kicks off in China.

However downside seen limited buoyed by expectations that supply disruptions could tighten the market.

Freeport-McMoRan warned it would need to start slashing output at its Indonesia mine to about 40 percent of capacity if it fails to get a government export permit.