Technically Zinc market is getting support at 193.9 and below same could see a test of 191.5 level, And resistance is now likely to be seen at 198.5, a move above could see prices testing 200.7.
Zinc on MCX settled up 0.05% at 196.30 on short covering while LME Zinc was 0.5 percent lower at $2,615.50 after metals were caught in a widespread market sell-off this week and ahead of Chinese trade data later in the session, but it was set for its biggest weekly drop since June as concerns over raw material costs eased.
Zinc prices received some support from declines in LME inventories, but was under pressure from the five- and 10-day moving averages which adhered to each other. LME zinc is likely to hover at $2,585-2,635/mt today.
A global measure of equity prices fell to a one-year low on Thursday as investors feared an escalating U.S. trade war with China and risks from a recent climb in interest rates. This has overpowered positive supply and demand signals for metals.
The U.S.-China trade dispute has reduced demand for riskier assets and helped push the LME index of industrial metals down 15 percent since June. The euro climbed to a week-high against the dollar as minutes of the ECB's policy meeting last month suggested that policy-makers have not abandoned their plan to end the ECB's 2.6 trillion-euro bond-purchase programme this year.
The number of Americans filing for unemployment benefits unexpectedly rose last week but remained near a 49-year low, and the increase appeared unlikely to refuted the view that the US labour market remains strong. Initial claims for state unemployment benefits increased 7,000 to a seasonally adjusted 214,000 for the week ended October 6, the Labor Department said on Thursday.
--Zinc trading range for the day is 191.5-200.7.
--Zinc settled flat recovered from lows as prices received some support from declines in LME inventories.
--Zinc inventories in LME-registered warehouses fell below 200,000 tonnes from more than 250,000 tonnes in August and are nearing 10-year lows.
--Stockpiles in Shanghai Futures Exchange storehouses at 29,204 tonnes are the smallest since 2007.
Courtesy: Kedia Commodities