Copper on MCX settled down -1.58% at 398 as optimism over U.S. President Donald Trump's capacity to drive economic growth faded. Indonesia may issue a temporary mining permit to the local unit of Freeport McMoRan Inc, the country's mining minister said, that would pave the way for the mining giant to resume exports of copper concentrate from its Grasberg mine in Papua. Energy and Mineral Resources Minister Ignasius Jonan said late on Monday that the government is now processing a proposal from Freeport, and may issue a temporary special mining permit for up to 6 months that will allow the company to resume copper exports. Consumer sentiment in the U.S. unexpectedly improved to its best level in thirteen years in the month of January, according to a report released by the University of Michigan. The University of Michigan said its consumer sentiment index for January was upwardly revised to 98.5 from the preliminary reading of 98.1. With the unexpected upward revision, the index topped the 98.2 reported for December to reach its highest level since jumping to 103.8 in January of 2004. Hedge funds and money managers added to their net long positions in copper futures and options in the week to Jan. 24, data from the U.S. Commodity Futures Trading Commission showed. Moves in metals were muted in Asian trade as China's week-long Lunar New Year holiday drained the markets of liquidity and direction. Technically market is under long liquidation as market has witnessed drop in open interest by -14.61% to settled at 16069 while prices down -6.4 rupees, now Copper is getting support at 393.5 and below same could see a test of 388.9 level, And resistance is now likely to be seen at 403.8, a move above could see prices testing 409.5.

Trading Ideas:

Copper trading range for the day is 388.9-409.5.

Copper prices dropped as optimism over U.S. President Donald Trump's capacity to drive economic growth faded.

Copper last week neared the $6,000 a tonne mark, supported by a drawdown in LME inventories this year.

Hedge funds and money managers added to their net long positions in copper futures and options in the latest week, data from the U.S. CFTC showed.