* Rupee extends gains to 2.3 pct over past five sessions * Stocks to be watched for direction * Weakness in the dollar against majors also boosts (Updates to mid-morning) MUMBAI, March 24 (Reuters) - The Indian rupee rose for a fifth straight session on Tuesday as improving risk appetite lifted domestic shares and bolstered hopes for foreign portfolio investments. By 10:25 a.m. (0455 GMT), the partially convertible rupee was at 50.31/33 per dollar, off an early high of 50.20, but 0.3 percent above its Monday's close of 50.46/47. Last week the rupee rose 1.7 percent, its biggest rise since the week to Dec. 19 and is up 2.3 percent in the last five trading sessions. "The rupee's uptrend is largely in line with gains in equities, but there is demand coming in at the lower levels," a senior dealer with a private bank said. "There is some non-deliverable forward related demand as well, but 50.15 is a strong resistance for the rupee, so it's likely to stay in a 50.15-40 band today," he added. Indian shares .BSESN rose more than 2 percent early, helped by firm global markets, but investors are likely to be cautious after the main index posted sharp gains over the past two weeks.

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