MCX Zinc under fresh buying; Resistance seen at 177.4
Commodity Online | July 22 2020
UPDATED 10:20:25 IST

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Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 9.33% to settled at 1734 while prices up 1.35 rupees.

Now MCX Zinc is getting support at 175.1 and below same could see a test of 173.8 levels, and resistance is now likely to be seen at 177.4, a move above could see prices testing 178.4.

Zinc yesterday settled up by 0.77% at 176.4 as data showed that social inventories of zinc ingots in China extended their decline over the weekend, which is positive to prices.

Risk appetite improved on a flurry of announcements about a potential COVID-19 vaccine and expectations of more stimulus from Europe and from the US.

The market cheered a slew of positive news on the vaccine front. Pfizer and BioNTech reported early positive data on a joint coronavirus vaccine.

Meanwhile, another candidate from Oxford University and AstraZeneca showed a positive immune response in an early trial. Meanwhile, EU leaders showed the first signs of compromise over carving up a proposed 750 billion euro ($858.3 billion) recovery fund to revive economies.

Negotiations that began in Brussels on Friday have continued into Monday, with German Chancellor Angela Merkel and French President Emmanuel Macron voicing cautious hopes that a compromise can be reached.

China kept its benchmark lending rate steady for the third straight month, matching market expectations, amid signs that the world’s second-largest economy is recovering from the shock coronavirus pandemic.The one-year loan prime rate (LPR) was kept unchanged at 3.85%, while the five-year LPR remained at 4.65%.

Trading Ideas:
--Zinc trading range for the day is 173.8-178.4.
--Zinc gains as data showed that social inventories of zinc ingots in China extended their decline over the weekend.
--Risk appetite improved on a flurry of announcements about a potential COVID-19 vaccine and expectations of more stimulus.
--China kept its benchmark lending rate steady for the third straight month, matching market expectations.

Courtesy: Kedia Commodities