OUTLOOK-India steel futures seen treading lower

MUMBAI, Nov 3 (Reuters) - India steel futures may tread lower in coming weeks on continued technical correction, but demand hopes in the domestic market may keep the downside limited, analysts said.

The most-traded steel long November contract NSTX9 on the National Commodity and Derivatives Exchange was 0.09 percent higher at 21,460 rupees per tonne at 4:54 p.m.

"Steel is in a technical downtrend unless it breaches the 21,700 rupees mark," said Parag Joshi, an analyst with Way 2 Wealth Securities. "Range seen in coming weeks would be 21,200-21,900 rupees."

The contract had shed 7.5 percent in October.

However, hopes of strong domestic demand could keep the downside limited, they added.

The Indian economy will expand at 6-6.5 percent in the year to March 2010, the prime minister said on Tuesday, despite uncertainity whether signs of a global recovery will lead to a return to a sustained growth path. See [ID:nBMA006179] (Reporting by Siddesh Mayenkar; Editing by Sunil Nair)