OUTLOOK - India silver seen extending losses to 3rd mth on dlr

MUMBAI (Reuters) - India silver futures may extend losses for a third straight month on the back of an expected strength in dollar overseas, which dims bullion's appeal as an alternative investment, analysts said.

The most-traded March silver was trading 0.39 percent higher at 24,357 rupees per kg at 5:26 p.m., after losing 4.9 percent in the previous nine trading sessions in February.

The contract had shed 10 percent in the previous two months.

"Overall we expect weakness to continue in silver on expected dollar strength, which (the dollar index) could move over 82," said Harish Galipelli, head of research with JRG Wealth Mangement.

Silver might be in the range of 23,000-25,500, he said.

Dollar index, which gauges the greenback's performance against a basket of currencies, was 0.17 percent lower at 79.892.

Investors are expected to support the dollar amid economic uncertainty after the fiscal problems in Euro zone, analysts said.

"Technically, silver is facing tough resistance at higher levels and selling on rise to 24,800/24,900 rupees is recommended for a target of 23,000 rupees, with a stop loss of above 25,100 rupees," said Pranav Mer, senior analyst, Mangal Keshav Commodities.

(Reporting by Siddesh Mayenkar; Editing by Harish Nambiar)