India copper falls as dollar, profit-taking hurt

MUMBAI, March 9 (Reuters) - India copper futures traded weak on Tuesday afternoon as a strong dollar and profit-taking after last week's rally weighed on sentiment, analysts said.

At 4.52 p.m., benchmark April copper MCCJ0 on the Multi Commodity Exchange of India (MCX) was down 1.12 percent at 338.90 rupees per kg.

"The dollar's strength is dragging the entire base metal complex lower," said Tejas Seth, senior research analyst with SMC Comtrade.

A strong dollar makes commodities denominated in the U.S. unit expensive for holders of other currencies and caps demand. [USD/]

"There is also profit-taking in copper after the rally we saw last week," he added.

Local prices of copper rose over 5 percent last week on the back of a 8.8 magnitude earthquake in top supplier Chile.

Selling was recommended in the benchmark copper contract between 340-341 rupees with a stop loss of 343 rupees and a target of 335 rupees, said Seth.

Copper inventories on the London Metal Exchange fell 2,700 tonnes to 538,875 tonnes on Tuesday. Inventories have fallen 9,000 tonnes since March 2 to 541,575 tonnes.<0#LME-STOCKS>

Nickel prices also traded lower on pressure from a rising dollar, analysts said.

"Fundamentals for nickel are supportive as stocks have started to fall and that can bring in some bargain buying on lower levels in the coming days," said Pranav Mer, senior analyst with Mangal Keshav Commodities.

Nickel stocks on the LME fell 312 tonnes to 159,912 tonnes.

At 4.52 p.m., benchmark March nickel MNKH0 was down 2.08 percent at 996.6 rupees.

Most traded March zinc MZIH0 was down 1.4 percent at 105.65 rupees and March lead MLDH0 was down 1.75 percent at 101.3 rupees.

(Reporting by Nandita Bose; Editing by Ramya Venugopal)