Mon Aug 17, 2009 3:36pm IST
MUMBAI, Aug 17 (Reuters) - India copper futures extended losses for a second day on continued profit-taking, triggered by soft U.S. consumer confidence data that renewed demand concerns, analysts said.
U.S. consumer confidence fell in early August as worries about scarce jobs and falling incomes outweighed expectations that the broader economy will improve, a survey showed. See [ID:nN14304812]. At 3:10 p.m. the most-traded August contract MCCQ9 was 2.15 percent lower at 295.20 rupees per kg, extending Friday's fall of 2.4 percent. The contract had gained 9.2 percent since the start of August.
"The outlook for copper is weak on profit-taking and growing risk aversion," said Gnanasekar Thiagarajan, director, Commtrendz Research.
"If copper breaches 287 (rupees), then copper might fall to 278," he added.
Meanwhile, copper stocks in the warehouses monitored by the London Metal Exchange rose by 1,175 tonnes to 294,050 tonnes.
"Copper prices may correct further, we suggest sell on rise," said Kapil Gandhi of STCI Commodities. "Selling is recommended on rise to 297 (rupees) level with the target of 285 level."
In other base metals, August zinc MZIQ9 was 2.80 percent lower at 85.00 rupees per kg, while lead for August delivery MLDQ9 was 2.10 percent lower at 86.25 rupees per kg.
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