MUMBAI, Jan 22 (Reuters) - India copper futures extended losses for a third day on Friday, weighed by U.S. President Barack Obama's plans to limit financial risk-taking, which raised concerns about diminishing capital flows from banks.
Ample liquidity was partly responsible for the rally in commodities complex.
The most-active February copper contract MCCG0 was 0.30 percent lower at 335.25 rupees per kg at 10:21 a.m., after losing more than 3 percent in the previous two sessions.
"In copper, 338/339 could be a good intra-day selling level, for a target of 332 rupees," said Abhishek Chauhan, an analyst with Angel Commodities.
President Obama laid out rules to restrict some banks' most lucrative operations, which he blamed for helping to cause the financial crisis, sending stocks and commodities tumbling. [ID:nN21200151]
"Copper would trade lower today on Obama's proposal. If copper breaks 334 rupee level, further fall could be seen till 329 rupee levels," said Aurobinda Prasad, head of research, Karvy Comtrade.
In other base metals, January zinc MZIF0 was 1.09 percent lower at 109.35 rupees per kg, while lead for January delivery MLDF0 was 0.81 percent lower at 104.05 rupees per kg.
(Reporting by Siddesh Mayenkar; Editing by Prem Udayabhanu)
