Copper prices trade lower at Rs 526.30 per kg on November 5 as participants increased their short position as seen by the open interest. The red metal pared earlier gains and traded in the negative zone.
Base metals have had a volatile session and the choppiness may remain for a few more sessions until there is clarity on the US election outcome.
Copper prices came under pressure amid signs of weakening demand from China. But a steady decline in inventory across exchange warehouses along with supply disruption in Chile may cap the downside.
The US dollar trades lower at 92.73 or down 0.67 percent in the evening session.
Neha Qureshi, Technical Research Analyst at Reliance Securities said, “LME Copper opened on a flat note at $6,832.75 levels, made a high of $6,852.25 and low of $6,797.25. Price currently trading at $6,800 level. Copper holds a resistance near $6,855 levels below which could see consolidation in a range of $6,770-$6,880 levels in the coming session.”
MCX iCOMDEX Base Metal Index was marginally down 3.93 points, or 0.03 percent, at 12,457.15 at 18:00.
In the futures market, copper for November delivery touched an intraday high of Rs 531 and a low of Rs 524.70 per kg on the 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 delivery for November slipped Rs 2.65, or 0.50 percent, to Rs 526.30 per kg at 18:02 hours with a business turnover of 5,196 lots. The same for December contract fell Rs 2, or 0.38 percent to Rs 528.45 per kg with a turnover of 718 lots.
The value of November and December contracts traded so far is Rs 1,141.56 crore and Rs 23.95 crore, respectively.
MCX Copper November is still holding below Rs 530 levels where trading near Rs 525 levels indicating downside pressure to continue below Rs 528 levels. “Support is at Rs 523-520 levels and resistance holds at Rs 531 levels,” said Qureshi.
At 1231 (GMT), the red metal price eased 0.54 percent quoting at $6,794.25 per tonne in London.