RTRS: India copper slides on global woes, demand worries
MUMBAI, Oct 6 (Reuters) - Indian copper futures traded weak on Monday as the global financial turmoil coupled with demand worries and a strong dollar hit confidence in the industrial metals market, analysts said.
At 5.45 p.m., the benchmark November copper MCCX8 on the Multi Commodity Exchange of India (MCX) was down 2.21 percent at 271.75 rupees per kg.
"Weak financial markets and demand related worries are pressurising metals today and even the short-term trend in base metals looks bearish because of these factors," said Reena Walia, an analyst with Angel Broking Ltd.
"Even if value-buying comes in at these levels I still see prices declining further," Angel's Walia added.
The dollar, which extended gains against the euro also weighed on prices.
A stronger U.S. currency makes commodities denominated under it expensive for holders of other currencies, capping demand.
Nickel prices fell more than 3 percent as demand continued to remain elusive and the global economic gloom pressured the metal down, analysts said.
At 5.46 p.m., the benchmark October nickel MNKV8 was down 2.84 percent at 703.5 rupees.
Nickel traded at a two-year low on Monday as demand from the stainless steel sector, the main consumer of the metal, remained weak.
Lead traded down tracking the complex and the overall macro-economic factors, whereas zinc pared initial losses to trade steady.
At 5.46 p.m., benchmark October lead MLDV8 on the MCX was down 1.96 percent at 79.85 rupees per kg and October zinc MZIV8 on the MCX was up 0.20 percent at 75.1 rupees a kg.
Immediate resistance for zinc is seen at 76.5 rupees and crucial support is pegged at 73.5 rupees, said a technical analyst from Motilal Oswal Commodities Broker Pvt Ltd. (Reporting by Nandita Bose; Editing by Harish Nambiar)