MUMBAI, Feb 4 (Reuters) - India's copper futures edged higher on Thursday moving away from their nearly 3-½ month lows struck in the previous session tracking overseas leads, analysts said. The most-active February contract MCCG0 was 0.46 percent higher at 304.90 rupees per kg at 10:23 a.m. The contract had struck a near 3-½ month low of 301.25 rupees on Wednesday, the lowest level since Oct. 21. "There could be a bounce-back on LME, gains will be retricted till 308 rupees," said Kunal Shah of Nirmal Bang Commodities. Three-month LME copper, which guides the domestic market, was trading 0.46 percent higher at $6,620 a tonne at 10:23 a.m. [MET/L] However, a strong dollar and monetary policy tightening fears in China, the largest consumer of industrial metals, could weigh on sentiment later in the session. "It may show some pull-back early but the overall trend remains weak on dollar and policy fears in China," said Aurobinda Prasad, head of research, Karvy Comtrade. The dollar kept its firm tone after climbing broadly the day before on improving U.S. job and industry data, while fears Portugal could be the next euro zone country to face a debt crisis lifted the greenback against the euro. [USD/] "One can go short in copper at 307, targeting 300, maintaining a stop loss of 309.50 rupees," said Prasad. In other base metals, zinc February MZIG0 was 0.52 percent higher at 97.05 rupees per kg, while lead for February delivery MLDG0 was 0.48 percent higher at 93.90 rupees per kg. (Reporting by Siddesh Mayenkar; Editing by Sunil Nair)

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