India’s copper futures may open slightly higher on Monday morning helped by strong overseas markets and a weak rupee, which makes the dollar-quoted asset expensive, analysts said.
Bargain-hunting could also emerge after the red metal shed about 15 percent since Jan. 19.
The most-active February copper MCCG0 on the Multi Commodity Exchange closed 1.2 percent higher at 299.95 rupees per kg in the last session. The contract may open at 303 rupees, said Kunal Shah of Nirmal Bang Commodities.
London Metal Exchange copper, which guides the domestic markets, jumped in early trade on Monday, dragging their Shanghai counterparts higher after last week’s heavy selling. [MET/L]
“The recent correction was overdone in copper and therefore prices may find support, buying could be done at 299, targeting 306.50, maintaining a stop loss of 296.50 rupees,” said Shah.
The Indian rupee dropped in early trade tracking a weak start to the local sharemarket and mixed regional peers. [INR/]
Copper may trade in the range of 299-310 rupees, said Tejas Seth, senior analyst with SMC Global.
GOLD:
India gold futures may open higher on Monday helped by bargain-buying after the yellow metal’s recent decline coupled with a weak rupee, which makes the dollar-quoted asset expensive, analysts said.
The benchmark gold April contract on MCX MAUJ0 closed at 16,286 rupees, up 1.1 percent in Saturday’s trade. The contract had shed about 4 percent in the previous three sessions.
The contract may open at 16,400 rupees, said Aurobinda Prasad, head of research, Karvy Comtrade.
“It’s bargain-buying at support levels, however the trend remains weak in the short-term,” said Prasad.
Gold may trade in the range of 16,160-16,420 rupees, said Murukesh Kumar, analyst with JRG Wealth Management.
Source: Reuters India