MCX Zinc likely to move in a range of 222.4-229
Commodity Online | April 26 2019
UPDATED 09:50:14 IST

MCX Mentha Oil under fresh buying; Resistance seen at 1477.9

MCX Aluminium may trade between 142.5-147.3 levels

MCX Nickel under fresh selling; Support seen at 825.6

NCDEX Chana likely to move in a range of 4574-4692

MCX Zinc likely to move in a range of 207.6-213.2

Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 23.2% to settled at 4784 while prices up 2.55 rupees.

Now MCX Zinc is getting support at 224.5 and below same could see a test of 222.4 level, And resistance is now likely to be seen at 227.8, a move above could see prices testing 229.

Zinc on MCX settled up 1.14% at 226.45 as China central bank injected funds into the market via targeted loans, improving market sentiment. Transactions of spot zinc remained slow in Shanghai due to poorer demand from traders as deliveries for long-term contracts concluded.

However, trades improved in Guangdong as downstream consumers stockpiled ahead of the Labour Day holiday. Global mine supply of zinc is expected to rise 6.4 percent this year to 13.87 million tonnes, according to the International Lead and Zinc Study Group (ILZSG).

But higher mine production has been slow to feed through to the refined market, with the ILZSG showing a 384,000 tonne deficit in 2018 and another shortfall in January.Handan in China's top steelmaking province of Hebei extended its orange alert for air pollution till CST 24:00 on Tuesday April 30, according to the local environmental bureau on Wednesday April 24.The level II warning was originally scheduled to end on Thursday April 25.

Recent upbeat economic data from the US also supported the greenback.The Ifo Institute said on Wednesday that its business climate index for Germany came in at 99.2 in April, weaker than last month's upwardly revised 99.7 and missed the consensus estimates of 99.9. The US will send a high-level trade delegation to Beijing next week for talks that will begin on April 30, the US Press Secretary Sarah Huckabee Sanders said in a statement.

Trading Ideas:
--Zinc trading range for the day is 222.4-229.
--Zinc prices gained as China central bank injected funds into the market via targeted loans, improving market sentiment.
--Handan in China's top steelmaking province of Hebei extended its orange alert for air pollution till Tuesday April 30.
--Global mine supply of zinc is expected to rise 6.4 percent this year to 13.87 million tonnes, according to the International Lead and Zinc Study Group.

Courtesy: Kedia Commodities

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