India's copper futures recovered on Tuesday, after losses in the previous two sessions, supported by global leads, but a stronger rupee kept a lid on gains, analysts said.
Industrial metals gained ground in early European trade, with copper rising around 4 percent as higher Chinese markets and better-than-expected U.S. data helped to lift sentiment, traders said. See [ID:nL3645045]
The benchmark copper February contract MCCG9 was 1.48 percent higher at 158.20 rupees per kg at 5:44 p.m., after falling 1.5 percent in the previous two sessions.
"Copper would witness volatile movements," said Navneet Damani, an analyst at Anand Rathi Commodities in Mumbai.
Any major dip to 154 rupees could be a buying opportunity with a target of 160-164, Damani added.
However, a stronger rupee kept the upside of the dollar-quoted asset limited.
The Indian rupee traded close to two week highs in afternoon trade on Tuesday as gains in shares continued to fuel hopes of capital inflows, but dollar demand from refiners prevented a sharp rally. See [ID:nBOM115385]
Analysts said copper's short-term outlook still remains bearish on persistent demand worries and rising inventory levels.
