India copper futures slip, nickel trades firm

MUMBAI May 27 (Reuters) - Indian copper futures slipped in the evening session on Wednesday as a strong dollar weighed on sentiment, analysts said.

At 6.37 p.m., the benchmark June copper MCCM9 on the multi Commodity Exchange of India was down 0.49 percent at 223.85 rupees per kg.

The dollar rose against the euro on Wednesday after a European Central Bank policymaker said further interest rate cuts couldn't be ruled out. [USD/]

A strong dollar makes dollar-denominated commodities expensive for holders of other currencies.

Earlier in the day, copper prices were supported by a rise in global equity markets, which rose as a jump in U.S. consumer confidence gave investors optimism that demand may improve should the economic downturn approach a bottom, analysts said.

Buying was recommended above 226 rupees with a stop loss of 223 rupees and a target of 229-232 rupees, said Pranav Mer, an analyst with India Infoline said.

Copper inventories on the London Metal Exchange on Wednesday fell 7, 300 tonnes to 319,275 tonnes.

Nickel prices climbed higher on Wednesday as analysts said nickel was buoyed by a slow trickle of re-stocking by Chinese steel mills, although speculative stockbuilding could also be a factor.

Nickel stocks have fallen sharply since late April, when they touched above 114,400 tonnes.

At 6.35 p.m., benchmark May nickel MNKK9 was up 0.71 percent at 641.6 rupees per kg.

The May zinc MZIK9 was down 0.99 percent at 69.8 rupees per kg and May lead MLDK9 was up 0.66 percent at 68.05 rupees per kg. (Reporting by Nandita Bose; Editing by Prem Udayabhanu)