India's copper futures surrendered the previous day's gains on Wednesday as investors fretted about the grim demand outlook amid a deepening reccession and a firmer rupee, analysts said.
"Copper is expected to trade sideways with a negative bias as demand concerns and rising inventory levels would still weigh on prices," said Pranav Mer, an analyst at India Infoline in Mumbai.
Three-month London copper traded lower by 0.99 percent at $3,340 a tonne at 10:14 a.m., after hitting a high of $3,410 earlier in the session.
The benchmark February copper contract MCCG9 on the Multi Commodity Exchange of India traded lower by 1.88 percent at 164.40 rupees per kg, at 10:14 a.m., after gaining about 3 percent in the previous session.
"We expect sideways movement in copper unless it breaches the key resistance level of 172 (rupees)," said an analyst at a commodity brokerage, adding the red metal may trade in the range of 164-172.
Selling is recommended on rallies to 170 rupees, with a target of 160-155 rupees and with a stop loss of 175 rupees, Mer added. At 10:14 a.m., January zinc MZIF9 was 1.27 percent lower at 62.25 rupees per kg, and January lead MLDF9 was 1.64 percent lower at 57 rupees per kg.
