Indian base metals fall as strong dollar weighs

MUMBAI, Nov 5 (Reuters) - Indian base metals slipped on Wednesday as a strong dollar dented investor appetite, analysts said. "Metals are down because the dollar has strengthened after the U.S. poll results," said an analyst with a Delhi-based brokerage. The dollar rose against a basket of major currencies on Wednesday, after posting its biggest one-day slide in 13 years the previous day, as Democrat Barack Obama won the U.S presidential election. A strong dollar makes dollar-denominated commodities expensive for holders of other currencies and caps demand. Copper futures slid more than 5 percent as a strong U.S. currency coupled with rising inventories and slackening demand weighed on prices, analysts said. At 3.55 p.m., the benchmark November copper MCCX8 on the Multi Commodity Exchange of India (MCX) was down 5.45 percent at 196.8 rupees per kg. Copper stocks in warehouses monitored by the London Metal Exchange were up 5,825 tonnes to 247,475 tonnes on Wednesday. Crucial support for benchmark November copper is pegged at 188 rupees and resistance seen at 215.24 rupees, said Dharmesh Bhatia, senior technical analyst, Kotak Commodity Services Ltd. Nickel, lead and zinc futures also slipped as the dollar weighed on sentiment. At 4.25 p.m., the benchmark November nickel MNKX8 was down 3.1 percent at 593.1 rupees. The benchmark lead for November delivery MLDX8 on the MCX was DOWN 3.29 percent at 72 rupees per kg and November zinc MZIX8 on the MCX was down 2.48 percent at 57 rupees a kg .