India's copper futures fell by over 2.5 percent on Wednesday pressured by rising inventory levels and grim demand outlook amid a deepening global recession, 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. Copper inventories in London Metal Exchange (LME) warehouses rose by 7,300 tonnes to 382,150 tonnes on Wednesday. At 6:17 p.m., the benchmark February copper contract MCCG9 on the Multi Commodity Exchange of India (MCX) traded lower by 2.18 percent at 163.90 rupees per kg. The contract hit a low of 163.2 rupees earlier in the 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 rupees. "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 6:18 p.m., January zinc MZIF9 was 3.09 percent lower at 61.10 rupees per kg, and January lead MLDF9 was 3.28 percent lower at 56.05 rupees per kg.

Source