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India copper futures trade up on short-covering

Tue Jun 23, 2009 6:48pm IST

(Updates prices)

MUMBAI, June 23 (Reuters) - Indian copper futures traded up on Tuesday on short-covering after losses in the past two sessions, even as concerns grew about slowing demand from China, the world's largest consumer, analysts said.

At 6.34 p.m., the benchmark June copper MCCM9 was up 1.54 percent at 234.15 rupees per kg.

"It is short-covering today after the falls we have witnessed in the past two sessions," said Pranav Mer, an analyst with India Infoline.

Copper prices had fallen close to four percent in the past two sessions.

Support for June copper was seen at 229 rupees and resistance is seen at 239.5 rupees, said Girish Patki, senior technical analyst with Angel Broking Ltd.

Demand concerns were reinforced after China's imports of refined copper surged to a record level for the fourth straight month in May, and gave rise to worries that buying from the largest consumer may dry up after months of record imports.

Buying was recommended on dips to 231.5 rupees with a stop loss below 229.5 rupees and a target of 236-238 rupees, said India Infoline's Mer.

Zinc, lead and nickel also rose tracking gains in the red metal, analysts said.

At 6.34 p.m., the benchmark June zinc MZIM9 was up 1.66 percent at 73.35 rupees per kg and benchmark June lead MLDM9 was up 1.09 percent at 78.6 rupees per kg.

The benchmark June nickel MNKM9 was up 1.01 percent at 711 rupees per kg.

(Reporting by Nandita Bose; Editing by Prem Udayabhanu)

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