Copper prices edged higher to Rs 522.60 per kg on September 30 as participants increased their long positions, as seen by the open interest.
Base metals have been under pressure over the past few days with choppiness in the dollar index and positive data from China. The US dollar index, measured against a basket of six currencies, gained 0.14 percent to trade at 94.06.
Copper prices are getting support from lower stocks at SHFE warehouses. However, a huge build up of inventory at LME warehouses in last two days may cap the upside.
Copper inventory at LME has risen 627,000 tonnes in the past two sessions while cancelled warrants earmarked for delivery fell below 31 percent from about 60 percent last week.
MCX iCOMDEX Base Metal Index rose 24.75 points, or 0.21 percent, at 11,711.50 at 6:23 pm.
In the futures market, copper for October delivery touched an intraday high of Rs 523.55 and a low of Rs 517.50 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 501.85 and a high of Rs 532.60.
Copper delivery for October gained Rs 2.10, or 0.40 percent, to Rs 522.60 per kg at 6:25 pm with a business turnover of 4,401 lots. The same for November contract jumped Rs 1.80, or 0.35 percent to Rs 518.70 per kg, with a turnover of 75 lots.
The value of October and November’s contracts traded so far is Rs 1,687.86 crore and Rs 19.99 crore, respectively.
Sriram Iyer, senior research analyst at Reliance Securities said, "LME copper and domestic copper remained under pressure today despite upbeat manufacturing and non-manufacturing PMI data from China this morning. One of the reasons for copper witnessing weakness is the strength of the US dollar. The dollar found support after upbeat data from the US on Tuesday in the form of consumer confidence."
Dollar bulls digested the US Presidential debate and will now await gross domestic product and ADP employment data from the US in the evening.
"On the charts, LME copper is taking support of 50-Day Moving Averages indicating some bounce back activity in the counter. Below $6570 will take prices to $6540-$6490 levels. Resistance is at $6625-$6675 levels. Domestic MCX copper prices hold a resistance of 21-Daily Moving Average which is placed at Rs 524.80 levels, below which will continue bearishness in the counter. Support holds at Rs 517-513 & resistance at Rs 522-525 levels. Copper could trade sideways to marginal downside momentum," said Iyer.
At 1 pm GMT, the red metal's price rose 0.68 percent quoting at $6,653.25 per tonne in London.For all commodities related news, click here