MUMBAI, July 30 (Reuters) - India's copper futures may open flat on Thursday as worries a potential pause in Chinese lending could stall a global recovery would be offset by a weak rupee, analysts said.
The most-traded August contract MCCQ9 on the Multi Commodity Exchange of India (MCX) ended 1.7 percent lower at 264.75 rupees per kg in the previous session.
MCX Copper contract may open at 264-265 rupees, said Pranav Mer, an analyst with India Infoline in Mumbai. "We might see further downward movement in copper till 259/255 (rupees)."
China's two biggest state-owned commercial banks have put a lid on their 2009 lending targets, according to domestic media reports, in a move that will significantly slow overall Chinese credit growth in the second half. See [ID:nPEK278491]
The partially convertible Indian rupee INR=IN weakened on dollar buying by refiners to meet month-end commitments and tepid Asian stock markets.
"Weakness may persist due to China news, weak U.S. data," said Kunal Shah, assistant vice-president with Nirmal Bang Commodities. Selling is recommended on rise to 267 rupees, with a target of 261.50 rupees.
The July zinc contract MZIN9 closed 2.4 percent lower at 78.80 rupees per kg, while lead for July delivery MLDN9 ended 1.4 percent lower at 84.30 rupees per kg in the last session.
GOLD:
India's gold futures may open slightly higher tracking overseas leads, and would eye the movements in dollar and stock markets to gauge the risk appetite, analysts said.
The benchmark August gold MAUQ9 closed 0.6 percent lower at 14,665 rupees per 10 grams in the previous session.
The contract is likely to open at 14,690 rupees per 10 grams, said Krishna Reddy, an analyst with Way 2 Wealth Securities. "Gold would now take support at lower levels. Support is placed at 14,570 rupees."
At 9:11 a.m., August Comex gold GCQ9 was 0.3 percent higher at $930 an ounce.
Gold may trade in the range of 14,675-14,800 rupees, said Gnanasekar Thiagarajan, director, Commtrendz Research.
(Reporting by Siddesh Mayenkar; Editing by Prem Udayabhanu) ((siddesh.mayenkar@thomsonreuters.com; +91-22-6636 9163; Reuters Messaging:siddesh.mayenkar.thomsonreuters.com@reuters.net))
