India copper reverses early losses on equity markets

(Updates prices)

MUMBAI May 19 (Reuters) - Indian copper futures reversed early losses on Tuesday taking strength from bullish world equity markets, analysts said.

The most active June contract MCCM9 was 2.19 percent higher at 224.10 rupees per kg at 5:57 p.m., rising from a low of 217.5 recorded earlier.

"Copper's rise is due of rallying equity markets," said Somnath Dey, in-charge metals and energy research with Religare Commodities.

World stocks rose for a third day running on Tuesday with banking stocks leading the gains in Europe, while oil hit a six-month peak. See [ID:nLJ937242]

But worries over weak consumption and oversupply in China still lingered in the market.

After solid results from U.S. home improvement retailer Lowe's Cos Inc (LOW.N) sparked a Wall Street rally on Monday, the market is looking for positive housing data later on Tuesday.

Copper stocks on the London Metal Exchange fell by 4,725 tonnes to 348,825 tonnes on Tuesday.

"Copper may rise further and test 235 rupee levels," said Praveen Singh, an analyst with Sharekhan Commodities.

"Short-term resistance is placed at 226 rupees and on breach of that, prices may rally to 232 rupees," Dey added.

Support is pegged at 220 rupees, Dey added.

May zinc MZIK9 was 1.95 percent higher at 73.25 rupees per kg, while lead May MLDK9 was 2.88 percent higher at 73.15 rupees per kg at 5:58 p.m..

(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)