India silver futures seen treading lower
today Dec 14, 2009
MUMBAI, Dec 14 (Reuters) - India's silver futures are expected to tread lower this month on extended profit-taking after the white metal rose 8.7 percent in November, coupled with weak physical offtake, analysts said.
The most-traded March silver MSVH0 on the Multi Commodity Exchange of India was at 27,121 rupees per kg, up 0.28 percent at 5:30 p.m. The contract hit a record high of 29,779 rupees on Dec. 2.
"There might be further profit-taking in silver after the recent rally," said Harish Galipelli, head of research with JRG Wealth Management in Kochi.
Selling is recommended at 27,600/27,700 rupees, with a target of 26,500 rupees and a stop loss of above 28,000 rupees, said Galipelli.
Weak local offtake in the physical spot market could also weigh on prices, they added.
High prices have also weakened silver consumption, said Suresh Hundia, president of the Bombay Bullion Association in an interview to Reuters on Dec. 9.
Hundia, who actively trades in silver, estimated silver imports were likely between 800-1,000 tonnes in 2009 from 2,800 tonnes in 2008.
(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)
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