Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 1.18% to settled at 10285 while prices down 3.15 rupees.
Now MCX Zinc is getting support at 179.7 and below same could see a test of 178.3 level, and resistance is now likely to be seen at 183.4, a move above could see prices testing 185.7.
Zinc on MCX settled down 1.71% at 181.10 on fresh selling tracking weakness from LME Zinc prices which shed 2.3% to settle at $2,396 as the rising death toll from the Wuhan virus outbreak deepened concerns over potential damage to economic growth and metals demand.
Chinese authorities on Wednesday said the virus had claimed a total of nine lives with 440 confirmed cases and stepped up efforts to control the outbreak. Meanwhile the premium of LME cash zinc to the three-month contract increased to $23.75 a tonne, its highest since Nov. 29, indicating tighter availability of LME supplies as physical demand for zinc is better than normal for the pre-Chinese New Year season.
The US dollar on Wednesday fell against a basket its rivals, easing off one-month highs, as the Chinese government’s plans to contain the virus seemed to ease equity investors’ concerns over a possible pandemic. On the trade front, US President Donald Trump said that the European Union has “no choice” but to agree to a new trade deal. In a meeting with European Commission President Ursula von der Leyen in Davos on Tuesday, Trump again threatened to levy tariffs on European car imports in the absence of renewed trade commitments from the bloc.
--Zinc trading range for the day is 178.3-185.7.
--Zinc dropped on fresh selling tracking weakness from LME Zinc prices which shed 2.3%.
--Pressure seen as Wuhan virus outbreak deepened concerns over potential damage to economic growth.
--Trump said the European Union has “no choice” but to agree to a new trade deal.
Courtesy: Kedia Commodities