India's copper futures extended gains for a fourth day on Wednesday on firm equities, but a strong rupee kept the upside limited, analysts said. The February contract MCCG9 gained 4.8 percent in the last three sessions. "There is some short-covering due to improving sentiments after Bernanke's speech" said Tejas Seth, a senior research analyst with SMC Global in Delhi. Federal Reserve Chairman Ben Bernanke expressed faith that the banking system could be stabilised and that authorities were on the right path in taking time to fully diagnose the health of top U.S. banks. "We have seen some stability in markets and is expected to continue," said Kunal Shah, an analyst with Nirmal Bang Commodities. The benchmark copper contract MCCG9 was 2.53 percent higher at 167.95 rupees per kg at 5:30 p.m., easing from a high of 168.8 rupees hit earlier. "A sustainable breakout above 174/175 should instigate rally in copper to 190," Seth added. Buying is recommended at a dip towards 165 rupees with a stop loss of 162 and a target of 171-175, Anand Rathi's analyst Navneet Damani. Traders would now await U.S. new home sales data, due 1500 GMT, to gauge direction in the base metals complex.

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