India copper futures may edge higher in early trade on Wednesday helped by overseas leads and a weaker rupee, analysts said.
The most-active June copper MCCM0 on the Multi Commodity Exchange (MCX) last closed at 316.75 rupees per kg, up 2.6 percent.
The contract may open at 318-319 rupees, said Aurobinda Prasad, head of research, Karvy Comtrade.
Three-month London copper MCU3=LX was trading 0.37 percent higher at $7,049 a tonne at 9:17 a.m.
A weaker rupee makes the dollar-quoted asset expensive. [INR/]
However, analysts said, the view still remains bearish in copper on wider euro zone debt crisis and monetary tightening by China, the largest consumer of industrial metals.
“There could be some recovery, but still we are holding on to bearish view, one can go short at 319, targeting 314, maintaining a stop loss of 321,” said Prasad.
GOLD:
India gold may edge lower on Wednesday weighed by a strong dollar overseas, which dims the yellow metal’s appeal as an alternative investment, analysts said
The most-active June gold contract on MCX MAUM0 closed flat at 17,188 rupees per 10 grams.
The contract may open at 17,150 rupees, said Kunal Shah of Nirmal Bang Commodities.
The dollar index, a gauge of the greenback’s performance against a basket of currencies, was 0.27 percent higher at 83.520.
“The bias will be on the lower side due to a strong dollar, gold may trade in the range 17,090-17,222, said Prasad.
Source: Reuters India