MCX Zinc under fresh selling; Support seen at 155.6
Commodity Online | May 26 2020
UPDATED 10:20:34 IST

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Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 0.73% to settled at 1248 while prices down 1.15 rupees.

Now MCX Zinc is getting support at 155.6 and below same could see a test of 154.4 levels, and resistance is now likely to be seen at 158.1, a move above could see prices testing 159.4.

Zinc yesterday settled down by 0.73% at 156.65 as investors feared the prospect of more protests in Hong Kong over tough new security laws and threatened U.S. sanctions.

China’s fiscal revenue may maintain a declining trend in the second quarter due to significant economic uncertainties, although it may start growing in the second half of the year, the finance ministry said.

China’s fiscal revenue fell 14.5% in the January-April period, the ministry said in a policy report, citing the impact from the coronavirus outbreak and government efforts to cut taxes and fees.

China has set a budget deficit target for this year of “at least” 3.6 percent of gross domestic product (GDP), Premier Li Keqiang said in his work report at the start of the annual parliamentary gathering. The target compares with the 2.8 percent target set for 2019.

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.

Trading Ideas:
--Zinc trading range for the day is 154.4-159.4.
--Zinc dropped as investors feared the prospect of more protests in Hong Kong over tough new security laws and threatened U.S. sanctions.
--China’s fiscal revenue may maintain a declining trend in the second quarter due to significant economic uncertainties.
--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

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