Copper prices were steady at Rs 527.45 per kg on September 24 as participants increased their short position as seen by the open interest. The red metal traded lower tracking gains in the US dollar.
Copper prices weakened amid buildup in stocks at SHFE and decline in China’s import premium signalling easing demand, however, lower stocks at LME warehouse and widening of deficit in the physical market may cap the downside.
The US Dollar Index, measured against a basket of six currencies, was mildly up 0.07 percent to 94.51.
MCX iCOMDEX Base Metal Index edged lower 95.46 points, or 0.82 percent, at 11,511.34 at 18:06.
In the futures market, copper for September delivery touched an intraday high of Rs 528.75 and a low of Rs 524.10 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 486 and a high of Rs 539.80.
Copper delivery for September contract fell by Rs 0.60, or 0.11 percent, to Rs 527.45 per kg at 18:00 hours with a business turnover of 1,261 lots. The same for October contract slipped 3.20, or 0.62 percent, to Rs 514.90 per kg with a turnover of 3,824 lots.
The value of September and October’s contracts traded so far is Rs 132.66 crore and Rs 839.05 crore, respectively.
MCX October Copper price is expected to trade negatively with resistance at Rs 519 and intermediate resistance at Rs 517 level, according to Motilal Oswal. The brokerage firm advised its clients to sell on rallies targeting lower support at Rs 513-511 zone.
At 1231 (GMT), the red metal price slipped 1.17 percent, quoting at $6,517 per tonne in London.
Source:-moneycontrol.com