MUMBAI, Nov 7 (Reuters) - Indian copper futures bounced back after steep falls in the past couple of weeks as the dollar weakened and equity markets held firm, analysts said. Prices of the red metal have declined close to 39 percent since the start of October as demand suffered amid the global slowdown. At 5.55 p.m., the benchmark November copper MCCX8 on the Multi Commodity Exchange of India (MCX) was up 1.28 percent at 189.25 rupees per kg. "The dollar is weak and that is giving support..in addition equity markets are also holding up and supporting sentiment in industrial metals," said Pravin Singh, an analyst with Sharekhan Commodities. The dollar slipped on Friday as early gains in European shares tempted some investors to sell the U.S. currency. [USD/] A weak dollar boosts demand from other currency holders by making dollar-denominated commodities cheap. Shanghai copper warehouse stocks fell 0.6 percent in the week ended Thursday, while aluminium inventories fell 1 percent. [ID:nBJD000428] The reversal in prices is a short-term relief as the demand outlook remains bleak amid the global slowdown, warned analysts. Reinforcing fears that the worst is yet to come were gross domestic product forecasts from the International Monetary Fund, which expects global growth to slow to 2.2 percent next year from 3.7 percent this year. [ID:nSP405205] London Metal Exchange copper stocks on Friday rose 2,250 tonnes to 254,800 tonnes. Selling in November copper was recommended at 189-192 rupees with a stop loss at 195 rupees and a target of 183 rupees, said Dharmesh Bhatia, senior technical analyst with Kotak Commodity Services Ltd. In macro-economic data, traders will watch out for the U.S payrolls figures and currency markets to guage further direction. ZINC, LEAD Zinc prices rose tracking copper and the weak dollar, analysts aid. In industry news, Australia's CBH Resources Ltd CBNH.BO said it will cut its zinc output by a third, as falling metal prices hit profitability. [ID:nSYD411328] At 5.55 p.m., benchmark November zinc MZIX8 on the MCX was UP 1.31 percent at 54.1 rupees a kg. Lead prices reversed gains and traded down in evening trade. However, analysts said the metal used in batteries has a better demand outlook compared with the rest of the pack. "Lead is the only metal in the complex which has fairly better fundamentals as there is a constant drawdown in stocks and that is supporting the metal," said Sharekhan's Singh. "However the global situation will keep it under pressure but as and when there is a revival in sentiment the metal will perform better than the others," said Sharekhan's Singh. Lead stocks on the London Metal Exchange on Friday fell 1,075 tonnes at 44,625 tonnes. At 5.56 p.m., the benchmark lead for November delivery MLDX8 on the MCX was down 0.56 percent at 70.8 rupees per kg. Benchmark nickel MNKX8 was down 0.5 percent at 561.8 rupees from its previous close. (Reporting by Nandita Bose; Editing by Prem Udayabhanu)

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