MUMBAI, Feb 16 (Reuters) - India copper futures extended gains on Tuesday tracking firm overseas markets, but a stronger rupee kept the upside restricted, analysts said. The most-active February copper contract MCCG0 on the Multi Commodity Exchange (MCX) was trading 1.40 percent higher at 322.15 rupees per kg at 4:28 p.m., rising from a low of 318.1 rupees. The contract had gained 0.9 percent in the previous session. London copper, which guides the domestic market, rose to its highest in more than two weeks, with sentiment buoyed by stronger growth in Japan and receding fears of policy tightening in China, the world's largest consumer of industrial metals. [MET/L] The Indian rupee continued to trade higher in afternoon trade with gains in domestic shares boosting sentiment, while stronger regional peers also cheered. [INR/] A strong rupee makes the dollar-quoted red metal cheaper. "In the short-term, copper could see a level of 330 rupees as the euro is set for a technical rebound," said Praveen Singh, an analyst with Sharekhan Commodities. In other base metals, zinc February MZIG0 was trading 1.42 percent higher at 103.25 rupees per kg, while lead for February delivery MLDG0 was trading 1.53 percent higher at 102.80 rupees per kg. "The bias is on the upside for zinc, buying on dips is recommended, and range seen is 98-107," said Singh. Nickel for February delivery MNKG0 was trading 2.16 percent higher 913.20 rupees per kg. "Buy (nickel) on break above 915 targeting 970 then 1,040 with stop loss below 860," said Karvy Comtrade in a note. (Reporting by Siddesh Mayenkar; Editing by Harish Nambiar)

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