Copper on MCX settled up 0.8% at 411.40 edged to a fresh 20-month high as a strike at the world's largest copper mine and the threat of supply disruptions at an Indonesia mine stoked supply worries. Meanwhile Copper prices dropped from the day's high as the supply concerns were outweighing a slightly stronger dollar as gains across the metals sector led rises in markets. Last week, talks between management and workers at the Escondida mine in the Atacama Desert of northern Chile broke down, and workers have been striking since Thursday. On Friday, BHP Billiton Ltd., the majority-owner of the mine, said it would not be able to fulfill contracts for copper deliveries or shipments as a result of the strike, according to a spokesman. Traders are also closely watching for news at Freeport-McMoRan Inc.'s Grasberg mine in Indonesia. The company has said that it will make cuts to output if it doesn't receive an export license from the government by midmonth. On Friday, prices briefly dipped on reports that the government had offered Freeport a special export license, before rallying after the company said there was still no agreement. Now investors will also keep an eye out on a number of U. S. economic reports in the week ahead, including the January producer price index on Tuesday, the January consumer price index and retail sales on Wednesday and housing-related data on Thursday. Technically market is under short covering as market has witnessed drop in open interest by -2.07% to settled at 17247 while prices up 3.25 rupees, now Copper is getting support at 409.1 and below same could see a test of 406.7 level, And resistance is now likely to be seen at 414.3, a move above could see prices testing 417.1.

Trading Ideas:

# Copper trading range for the day is 406.7-417.1.

# Copper prices seen gain's after Escondida declared force majeure on its shipments and a fire broke out in another dormitory area for contractors.

# Copper prices dropped from the day's high as the supply concerns were outweighing a slightly stronger dollar

# Strike at the Escondida mine in Chile raised supply fears about a market that has been starved of investment.