Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 23.4% to settled at 1540 while prices up 2.4 rupees.
Now MCX Zinc is getting support at 157 and below same could see a test of 154.9 levels, and resistance is now likely to be seen at 160.3, a move above could see prices testing 161.5.
Zinc yesterday settled up by 1.53% at 159.05 on expectations of an economic recovery and as investors focussed on more stimulus in China.
China's zinc concentrate imports in April rose 50% from the previous month, customs data showed, as smelters stocked up on raw material before the pandemic reduced mine supply.
China will strengthen its economic policy and counter-cyclical adjustments and continue to push to lower interest rates on loans, central bank Governor Yi Gang said.
Yi, in an interview published by the central bank, said China’s economic fundamentals are unchanged despite many uncertainties and reiterated that the central bank’s prudent monetary policy will be more flexible.
The economy shrank 6.8% in the first quarter, the first contraction in decades, hit by the outbreak of the new coronavirus, and analysts say it could take months for broader activity to return to pre-crisis levels.
The global zinc market surplus declined to 47,300 tonnes in March from a revised surplus of 140,500 tonnes in February, data from the International Lead and Zinc Study Group (ILZSG) showed.
The February figure was revised from a surplus of 130,100 tonnes in last month's data. During the first three months of the year, the global surplus rose to 240,000 tonnes from 8,000 tonnes in the same period last year.
--Zinc trading range for the day is 154.9-161.5.
--Zinc gains on expectations of an economic recovery and as investors focussed on more stimulus in China.
--China's zinc concentrate imports in April rose 50% from the previous month, customs data showed.
--The global zinc market surplus declined to 47,300 tonnes in March from a revised surplus of 140,500 tonnes in February.
Courtesy: Kedia Commodities