Indian shares trim gains; Reliance, banks rise

* Stocks off highs on resistance after four-day rally

* Reliance Ind up nearly 2 pct; announces oil find

* State Bank, ICICI Bank gain on improving econ outlook

* Wipro rises 0.8 pct on robust deal pipeline
(Updates to late morning)

MUMBAI, Nov 10 (Reuters) - Indian shares were up 0.2
percent on Tuesday after an early rally triggered resistance,
but Reliance Industries (RELI.BO) firmed after the energy giant
said it found oil in a block off the western coast.

Gajendra Nagpal, CEO of Unicon Financial, said investors
were upbeat after G20 finance ministers' pledge to keep
emergency measures in place until a recovery was assured, but
there was concern about valuations.

Reliance, which has the heaviest weight in the main index,
rose as much as 3.7 percent after the oil discovery
announcement in the Cambay basin off Gujarat state.

By 11:24 a.m. (0554 GMT), the 30-share BSE index
was trading up 0.16 percent at 16,525.70, with 19 of its
components gaining.

The index rose as much as 1.1 percent in early deals, but
faced resistance after rising for the past four previous.

"We are cautious on our market as valuations do not support
a runaway rally," Nagpal said, although the sentiment was
turning better globally with the feeling that the stimulus
measures will be kept in place for some time.

The benchmark index is up more than 71 percent so far this
year, helped by foreign funds inflow of almost $14.4 billion.

Reliance was up nearly 2 percent at 2,064 rupees after
rising as high as 2,100 rupees.

Leading banks such as State Bank of India (SBI.BO) and
ICICI Bank (ICBK.BO) firmed as the long-term outlook for them
was positive, analysts said.

"I would still recommend a buy on banks. If the economy has
to grow, banking is going to play a very vital role there,"
said Nagpal.

State Bank rose 1.5 percent to 2,353 rupees and ICICI
climbed 1.3 percent to 900.75 rupees.

Wipro, the country's No. 3 software services exporter, was
up 0.8 percent at 607.55 rupees, as it saw robust deal pipeline
on the back of improving IT demand worldwide. [ID:nBMA006386]

In the broader market, gainers led losers in the ratio of
1.3:1 on volume of 151 million shares.

The 50-share NSE index was up 0.2 percent at
4,909.20.

STOCKS ON THE MOVE

* Alstom Projects India (ABBP.BO) was up 2.8 percent at 536
rupees after the power generation services provider said it won
contracts worth 3.65 billion rupees from Hindalco Industries
(HALC.BO) for supply and installation of four gas treatment
plants. [ID:nBMB009046]

* Unichem Laboratories (UNLB.BO) was up 4.7 percent at
264.35 rupees after the drugmaker said it had received approval
from the U.S. Food and Drug Administration for its bulk drug
facilities in Madhya Pradesh and Maharashtra. [ID:nBOM278421]

The stock rose as much as 10.8 percent in early deals.

MAIN TOP 3 BY VOLUME

* Reliance Natural (RENR.BO) on 6.5 million shares

* Suzlon Energy (SUZL.BO) on 4.7 million shares

* IFCI (IFCI.BO) on 4.5 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report
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* India bond report
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* Dollar near 15-mth lows, high-yielders hold gains
[FRX/]
* Oil below $79 as storm fears abate, stocks seen up
[O/R]
* Asia stocks, currencies rise on risk appetite
[MKTS/GLOB]
* Dow hits 2009 high in rally on bigger risk appetite
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Ami Shah; Editing by Ranjit Gangadharan)