Copper prices declined to Rs 526.55 per kg on October 28 as participants increased their short position. The base metal pared morning gains and slipped into the negative zone, tracking gains in the dollar.
The red metal traded lower as market player shifted from riskier to safe-haven assets amid rising coronavirus infections, uncertainty relating to the US stimulus package and US Presidential elections. Copper was also weighed down by higher stocks at approved warehouses of the London Metal Exchange (LME).
The dollar trades firm at 93.48, or up 0.6 percent, in the evening session.
MCX iCOMDEX Base Metal Index was down 33.36 points, or 0.27 percent, to 12,324.11 at 19:11 hours.
In the futures market, copper for November delivery touched an intraday high of Rs 533.35 and a low of Rs 524.30 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 futures for November delivery slipped Rs 3.25, or 0.61 percent, to Rs 526.55 per kg at 19:13 hours on a business turnover of 4,673 lots. The same for December delivery fell Rs 2.9, or 0.55 percent, to Rs 526.40 per kg on a turnover of 137 lots.
The value of November and December’s contracts traded so far is Rs 1,737.99 crore and Rs 31.32 crore, respectively.
Neha Qureshi, Technical Research Analyst at Reliance Securities, said “MCX November Copper futures is trading flat in the Rs 529-533 range, indicating sideways to marginal downside momentum. Support and resistance stands at Rs 527-523 and Rs 532-534 levels, respectively."
Geojit Financial Services sees initial weakness below Rs 527.50. "One could anticipate price recovery towards Rs 535.30-537.80 levels."
At 1347 (GMT), the red metal price eased 0.71 percent to $6,742.50 per tonne in London.For all commodities related news, click here