In the futures market, copper for October delivery touched an intraday high of Rs 546 per kg and a low of Rs 540.10 per kg on the MCX. Surging coronavirus cases have paused a rally in copper.
Copper prices traded lower at Rs 540.05 per kg on October 26 as participants trimmed their positions, as seen by the open interest. The base metal declined in the evening session tracking a rebound in the US dollar.
Copper prices came under pressure on dimming prospects of additional United States economic stimulus and surging coronavirus cases around the world, sparking doubts over a sustained global economic recovery.
However, the downside on the metal remained capped amid supply disruption from Chile due to labour strikes.
The US dollar index climbed 0.27 percent to 93.02 in the evening session.
Money managers have increased their bullish COMEX copper bets by 11,040 net-long positions to 91,578, according to weekly Commodity Futures Trading Commission (CFTC) data.
The recent run-up in copper towards $7,000 per tonne in the short term is now getting questionable, and a further sharp surge from here in the near term looks doubtful. Short term momentum could be positive on any positive deal over the COVID-19 relief package in the US, said Motilal Oswal in a note.
Neha Qureshi, technical research analyst at Reliance Securities said, “LME copper prices were trading weak this Monday evening in Asian trade amid reports that France, Spain and Italy could impose complete lockdown to curb the spread of the coronavirus and could hurt the global economic recovery.”
Technically, copper is trading at $6,900 levels indicating sideways momentum where below $6,820 will lead to downside pressure. Support holds at $6,810-$6,770 levels and resistance is at $6,866-$6,910 levels, she said.
The MCX iCOMDEX Base Metal Index was down 46.24 points, or 0.37 percent, at 12,304.58 at 7:01 pm.
In the futures market, copper for October delivery touched an intraday high of Rs 546 per kg and a low of Rs 540.10 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 494.80 and a high of Rs 549.05.
Copper delivery for October slipped Rs 5.05, or 0.93 percent, to Rs 540.05 per kg at 7:03 pm with a business turnover of 685 lots. The same for November contract eased Rs 4, or 0.75 percent to Rs 530.10 per kg with a turnover of 4,789 lots.
The value of October and November’s contracts traded so far is Rs 117.77 crore and Rs 1,225.63 crore, respectively.
Domestic copper is trading with small cuts in the afternoon trade tracking weak overseas prices, said Qureshi. "Technically, MCX Copper November is trading on a positive note in a range of Rs 530.45-535.35 levels indicating that it could trade sideways to marginal upside momentum. Support is at Rs 530-527 & resistance is at Rs 537-542 levels."
Axis Securities advised its clients to sell copper at Rs 533 with a stop loss at Rs 536 and target of Rs 529.
At 1:27 pm GMT, the red metal's price declined 1.22 percent to quote at $6,792 per tonne in London.For all commodities related news, click here