MCX Zinc under fresh selling; Resistance seen at 216
Commodity Online | January 27 2021
UPDATED 10:20:36 IST

NCDEX Jeera under short covering; Resistance seen at 13835

NCDEX Turmeric under short covering; Support seen at 8826

NCDEX Mustard Seed under long liquidation; Resistance seen at 5534

MCX Crude Palm Oil under fresh selling; Support seen at 1040

NCDEX Ref. Soya Oil under long liquidation; Resistance seen at 1185

Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 3.06% to settled at 1615 while prices down 0.75 rupees.

Now MCX Zinc is getting support at 213.1 and below same could see a test of 211.8 levels, and resistance is now likely to be seen at 216, a move above could see prices testing 217.6.

Zinc yesterday settled down by 0.35% at 214.25 as rising COVID-19 cases and doubts over the ability of vaccine makers to supply the promised doses on time soured risk appetite.

Faced with the threat from a new COVID-19 strain, the United States will prohibit most non-US citizens who recently visited South Africa from entering, and France may impose new lockdown measures.

The British Health Minister warned that vaccines may be less effective against new virus variants. After completing compulsory testing of about 7,000 people, Hong Kong eased restrictions on uninfected residents in Kowloon.

US President Biden warned citizens to prepare for the darkest days of the pandemic and announced a "wartime" pandemic prevention plan.

However, Republican lawmakers insisted on opposing large-scale stimulus.But even so, the market was still optimistic about a new round of stimulus bills.

Data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 4,900 mt from last Friday January 22 to 146,600 mt as of Monday January 25.

The stocks were up 1,900 mt from last Monday January 18. China's refined zinc output stood at 553,500 mt in December, falling 8,800 mt or down 1.57% on month and up 3.06% on year. In the full 2020, output totalled 6.1 million mt, up 4.44% from 2019.

Trading Ideas:
--Zinc trading range for the day is 211.8-217.6.
--Zinc prices dropped on the defensive as rising COVID-19 cases and doubts over the ability of vaccine makers to supply the promised doses.
--Data showed that social inventories of refined zinc ingots increased 4,900 mt from last Friday.
--US President Biden warned citizens to prepare for the darkest days of the pandemic and announced a "wartime" pandemic prevention plan.

Courtesy: Kedia Commodities
Commodity Arrivals Rate
Mustard Oil 5 14200.00
Ghee NR 42000.00
Coconut Oil 8 21900.00
Tamarind 7 12000.00

More