Copper prices eased to Rs 527.70 per kg on October 29 as participants increased their short positions. The base metal pared early gains to trade lower, weighed down by firmness in the dollar and increasing concerns about rising coronavirus cases.
Improved demand from China may lend support to prices. However, fresh lockdowns in France and Germany may limit any upside.
The dollar trades firm at 93.92, or up 0.5 percent, in the evening session, its highest level since September 30.
MCX iCOMDEX Base Metal Index was down 67.50 points, or 0.55 percent, to 12,274.80 at 19:39 hours.
In the futures market, copper for November delivery touched an intraday high of Rs 530.90 and a low of Rs 526.25 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 493.40 and a high of Rs 541.35.
Copper for November delivery slipped Rs 0.65, or 0.12 percent, to Rs 527.70 per kg at 19:41 hours on a business turnover of 4,883 lots. The same for December delivery fell Rs 0.7, or 0.13 percent, to Rs 527.40 per kg on a turnover of 135 lots.
The value of November and December’s contracts traded so far is Rs 1,233.93 crore and Rs 8.71 crore, respectively.
Neha Qureshi, Technical Research Analyst at Reliance Securities, sees support for copper at $6,723.69 from where a bounce back can be expected. "A break below this level could see a test of $6,693 levels. Resistance is placed at $6,749-6,777 levels."
"MCX November Copper futures is trading in the Rs 527-531 range, indicating sideways to marginal downside momentum. Support and resistance is seen at Rs 527-523 and Rs 532-534 levels, respectively."
At 14:13 (GMT), the red metal price declined 0.33 percent to $6,726 per tonne in London.
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