MUMBAI, April 23 (Reuters) - India copper futures edged lower on Friday evening pressured by a strong dollar overseas, but reviving demand outlook on the back of strong economic data limited the downside, analysts said. The most-active April copper contract MCCJ0 was trading 0.35 percent lower at 341.75 rupees per kg at 5:54 p.m. The dollar index, a gauge of greenback's performance asgainst a basket of currencies, was 0.25 percent higher at 81.771. Supporting the demand outlook, German business sentiment rose much more than expected, while Euro zone industrial new orders jumped. [ID:nLDE63M0M0] [ID:nBEB004451] This followed upbeat data on Thursday that showed the number of U.S. workers filing new claims for jobless aid fell last week, while producer price data showed inflation is muted. "Copper may trade sideways in the range of 340-346," said Pranav Mer, senior analyst with Mangal Keshav Commodities. "For copper, 345 remains a crucial resistance, prices might drift towards 341-37 levels," said India Infoline in a report. In other base metals, April zinc MZIJ0 was trading 0.42 percent lower 105.55 rupees per kg, while lead for April delivery MLDJ0 was trading 1.08 percent lower at 101.00 rupees per kg. "Buy zinc at 104.5-105, for a target of 106.5/108, maintaining a stop loss of 103.4," said Mer. Nickel for April delivery MNKJ0 was trading 1.45 percent lower at 1,185.50 rupees per kg. Support for nickel is at 1,180, prices may rise towards 1,200/1,210, India Infoline's report added. (Reporting by Siddesh Mayenkar; editing by Harish Nambiar)

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