Copper prices declined to Rs 516.30 per kg on September 29 as participants increased their short positions as seen by the open interest.
Copper prices traded lower tracking huge build up in stocks in LME warehouses along with flipping of LME cash to three-month spread from backwardation to contango may cap the upside.
Copper inventory at LME rose 29,500 tonnes to 103,125 tonnes yesterday. Premium for the cash over 3-month contracts has reversed into discount.
MCX iCOMDEX Base Metal Index slipped 46.40 points, or 0.40 percent, at 11,654.06 at 18:25.
In the futures market, copper for October delivery touched an intraday high of Rs 520.90 and a low of Rs 515.80 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 slipped Rs 4.15, or 0.80 percent, to Rs 516.35 per kg at 18:26 hours with a business turnover of 4,607 lots. The same for November contract shed Rs 3.80, or 0.74 percent, to Rs 512 per kg with a turnover of 56 lots.
The value of October and November’s contracts traded so far is Rs 1,303.94 crore and Rs 9.63 crore, respectively.
Sriram Iyer, senior research analyst at Reliance Securities, said LME Copper opened at $6614.00, made a high of $6,624.00 and made a low of $6,524.25. Prices are currently trading at $6,538.00. Yesterday’s close was $6,596. It is trading below its 21 as well as 50 Daily Moving Averages indicating a negative trend in the counter. Below $6,525 will take prices to $6,440-$6,400 levels. Resistance is at $6,575-$6,611 levels.
MCX Copper October is trading on a negative note where below Rs 524.76 will continue its bearish momentum up to Rs 511-504 levels in the coming session. On the upside, Rs 522-525 levels will hold resistance. Copper could trade sideways to marginal downside momentum, he said.
At 1301 (GMT), the red metal prices slipped 0.83 percent quoting at $6,541.50 per tonne in London.For all commodities related news, click here