Copper prices declined to Rs 643.65 per kg on February 17 as participants increased their short positions as seen by the open interest. The base metal recovered losses after a gap-down open in evening trade.
Copper storage levels at LME accredited warehouses increased indicating price may fall, capping the bull move.
LME copper prices briefly touched their highest level since 2012 on February 16, extending a bull run driven by optimism over Chinese demand and global economic recovery, before pulling back in thin trade.
Optimism over a speedy global economic recovery underpinned the market sentiment from a broader perspective.
The US dollar traded higher at 90.83 or up 0.36 percent in the evening session.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Copper is trading with marginal bearish bias since morning and we may expect the prices to test the intraday support levels of Rs 642-639 in the upcoming session. It has resistance at Rs 648-650 levels.”
MCX iCOMDEX Base Metal Index was down 62.50 points, or 0.43 percent, at 14,362.68 at 18:38.
In the futures market, copper for February delivery touched an intraday high of Rs 647.10 and a low of Rs 640.45 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 585 and a high of Rs 649.65.
Copper delivery for February dropped Rs 3.15, or 0.49 percent, to Rs 643.65 per kg at 18:39 hours with a business turnover of 3,933 lots. The same for March contract slipped Rs 1.10, or 0.17 percent to Rs 645.70 per kg with a turnover of 1,932 lots.
The value of February and March’s contracts traded so far is Rs 1,055.64 crore and Rs 161.29 crore, respectively.
Geojit Financial Services said prices are still in the previous day consolidation range and expect to trade in the range of Rs 640-650. A firm move which breaks either side of the mentioned region could set the trend.
At 1313 (GMT), the red metal price fell 0.39 percent, quoting at $8,394.50 per tonne in London.
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