MCX Zinc under fresh buying; Support seen at 194.3
Commodity Online | September 17 2020
UPDATED 10:20:57 IST

MCX Mentha Oil likely to move in a range of 952-971.8

MCX Nickel likely to move in a range of 1089.7-1118.5

MCX Cotton under fresh buying; Support seen at 17950

MCX Zinc under long liquidation; Resistance seen at 196.7

MCX Copper under short covering; Resistance seen at 535.3

Technically Zinc market is under fresh buying as market has witnessed gain in open interest by 3.52% to settled at 2326 while prices up 1.05 rupees.

Now MCX Zinc is getting support at 194.3 and below same could see a test of 193.1 levels, and resistance is now likely to be seen at 196.2, a move above could see prices testing 196.9.

Zinc yesterday settled up by 0.54% at 195.35 driven by upbeat Chinese and U.S. economic data, but the dollar, held steady as investors awaited the Federal Reserve's view on the economy at its policy meeting.

Retail sales in China rose 0.5% in August from a year ago — the first positive report for the year so far — according to the country’s National Bureau of Statistics.Still, retail sales for the first eight months of the year were down 8.6% from a year ago, the bureau said.

Chinese industrial production grew 5.6% in August from a year ago while fixed-asset investment declined 0.3% for the first eight months of the year.China's August refined zinc output rose 2.8% to 450,000 tonnes from last year, hitting a record monthly high in nearly five years as smelters boosted production.

Zinc output from 49 Chinese producers increased by 19,000 tonnes last month compared with the revised July data, sending production for the January-August period to 3.37 million tonnes, up 2.1% from same period in 2019.

September zinc output to rise to above 470,000 tonnes and overall industry to be more stable. China’s refined zinc output stood at 509,100 mt in August, rising 16,300 or up 3.3% on month and up 1.98% on year.

Trading Ideas:
--Zinc trading range for the day is 193.1-196.9.
--Zinc gained driven by upbeat Chinese and U.S. economic data, but the dollar, held steady as investors awaited the Federal Reserve's view on the economy.
--Chinese industrial production grew 5.6% in August from a year ago.
--China's August refined zinc output rose 2.8% to 450,000 tonnes from last year, hitting a record monthly high in nearly five years as smelters boosted production.

Courtesy: Kedia Commodities