Technically MCX Zinc market is getting support at 197.2 and below same could see a test of 195.4 level, And resistance is now likely to be seen at 200.8, a move above could see prices testing 202.6.
Zinc on MCX settled down 0.45% at 198.85 on fresh selling tracking weakness from LME Zinc prices which eased 0.4 percent to settled at $2,834.50 a tonne after earlier coming close to Wednesday's peak of $2,848.50, which was the highest since early July, sentiments turned down after comments from U.S. President Donald Trump chilled optimism over an imminent China trade deal, while tight supply of metal underpinned prices.
Base metals complex dropped in yesterday's session as US dollar snapped a four-session decline after the British pound stalled at lower levels ahead of a vote to extend Britain's March 29 deadline for exiting the EU. The UK Parliament voted to postpone the Brexit deadline. PM Theresa May put forward a measure that sought to delay the UK’s exit beyond the current March 29 deadline.
Data from China’s NBS said that industrial output slowed more than expected in Jan and Feb, suggesting a slowdown in the Chinese economy. The value-added industrial output in China rose 5.3% in January-February from the previous year, compared to 5.7% a year ago and economists’ estimates of 5.6%. Thursday’s reading was the slowest growth in 17 years.
While from US side the number of Americans filing for unemployment benefits increased more than expected last week, hinting at a slowdown in the labour market. Now traders are eyeing for today data that the eurozone will release its February CPI, and the US will release its industrial output for February and the University of Michigan consumer sentiment index for March.
--Zinc trading range for the day is 195.4-202.6.
--Zinc prices dropped after comments from U.S. President Donald Trump chilled optimism over an imminent China trade deal.
--The premium of cash zinc over the three-month LME contract stood at $52 a tonne, the highest since Jan. 7, underscoring tight near-term supply for physical metal.
--China's decision to increase its budget deficit ratio to 2.8 percent this year from 2.6 percent in 2018 is appropriate for the economy.
Courtesy: Kedia Commodities