India copper futures extend gains on LME stock dip

MUMBAI, March 4 (Reuters) - India copper futures extended gains for a fourth day on Wednesday helped by a fall in inventory on the London Metal Exchange (LME), but a firm rupee kept the upside limited, analysts said.

China's plans to boost spending also aided sentiments, they added. See [ID:nBJC000263]

The benchmark April contract MCCJ9 was 1.31 percent higher at 185.75 rupees per kg at 4:00 p.m., after falling to a low of 183.8 rupees earlier.

"We expect to find initial resistance towards 187.50 followed by 190 levels, on (an) intra-day basis (it) looks likely to test any of this levels," said Paras Sejpal, an analyst with Transmarket Group.

"A major breakout took place yesterday at 182 and its not too late to enter the market," said Amrut Deshmukh, a senior technical analyst with Way 2 Wealth Securities in Mumbai.

"Buying is recommended on a dip to 184 if any, with a target of 190-195 and with a stop loss of 180," said Deshmukh, adding "we don't see any immediate pullback in copper."

Copper stocks fell by 4,850 tonnes to 526,025 tonnes on Wednesday on LME.

A firm rupee makes the dollar quoted asset cheaper. The Indian rupee was stronger in afternoon trade on Wednesday tracking gains in other Asian currencies versus the dollar, while a rise in the domestic stock market also helped.

Analysts said traders would be awaiting U.S. ISM non-manufacturing index and weekly mortgage market index to gauge market direction of the base metals complex.

At 4:01 p.m., March zinc MZIH9 was 2.14 percent higher at 59.70 rupees per kg, while March lead MLDH9 was 2.58 percent higher at 57.70 rupees per kg.

Source: http://in.reuters.com/