RTRS: India copper futures edge lower on overseas leads
MUMBAI, Nov 3 (Reuters) - India copper futures edged lower on Tuesday tracking overseas leads, but a weak rupee and strong U.S. and China data on Monday kept the downside limited, analysts said.
The most-traded November copper contract MCCX9 on the Multi Commodity Exchange was 0.77 percent lower at 303.90 rupees per kg at 5:22 p.m.
London copper, which guides the domestic market, fell as caution dominated ahead of data on U.S. auto sales and comments by the Federal Reserve on growth in the United States, the world's largest economy. [MET/L]
Purchasing manager data from China and the U.S. Institute of Supply Management lent support, with the ISM's manufacturing index up to 55.7 in October, the highest since April 2006, U.S. home sales and construction activity also picked up and euro zone factory activity expanded for the first time in 17 months. [ID:nSP62642] [ID:nPEK121771] [ID:nN02435553]
The Indian rupee further extended losses in afternoon session on Tuesday, in line with the domestic sharemarket, while a pause in the dollar's slide versus major units also hurt. [USD/]
A weak rupee makes the dollar-quoted asset expensive. "It (copper) is volatile and may come down to 302 rupees later in the session, resistance is placed at 307 rupees," said Somnath Dey in-charge, metals and energy research with Religare Commodities.
"Prices are already trading at their highs and may see some profit-taking, selling is recommended at 307/306, with a target of 300 and with a stop loss of 310 rupees," said Pranav Mer, an analyst with India Infoline.
In other base metals, November zinc MZIX9 was 0.29 percent lower at 101.60 rupees per kg, while lead for November delivery MLDX9 was 1.40 percent lower at 105.45 rupees per kg.
(Reporting by Siddesh Mayenkar; Editing by Prem Udayabhanu)