MCX Zinc under fresh selling; Support seen at 199.3
Commodity Online | October 29 2020
UPDATED 10:20:04 IST

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MCX Nickel likely to move in a range of 1181.2-1215

MCX Zinc under short covering; Resistance seen at 216

MCX Copper under short covering; Resistance seen at 594.9

Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 5.63% to settled at 2720 while prices remain unchanged 0 rupees.

Now MCX Zinc is getting support at 199.3 and below same could see a test of 197.2 levels, and resistance is now likely to be seen at 203.9, a move above could see prices testing 206.4.

Zinc Zinc settled flat paring gains as the Chinese economy is expected to grow 2.1% this year, its weakest pace in more than four decades.However downside seen limited as overseas zinc concentrate supply will get affected after soaring coronavirus cases prompted some countries to tighten restrictions.

Expectations for a US fiscal stimulus package before the Nov. 3 election faded, and COVID-19 infections surged in the US and Europe, stoking risk-off sentiment among investors, but better-than-expected orders for US durable goods in September boosted sentiment.

The global refined zinc market, meanwhile, will see a surplus of 620,000 tonnes in 2020, and a surplus of 463,000 tonnes in 2021, the ILZSG forecast.

The pandemic has also hit mining of zinc, especially in Latin American nations as countries imposed restrictions to stem its spread, the ILZSG said, with global zinc output likely to fall by 4.4% to 12.33 million tonnes in 2020, before rising by 6.6% to 13.14 million tonnes in 2021.

The group said the 2021 increase in zinc output would "mainly be a consequence of further rises in China, India and the United States, combined with higher output in Japan, Mexico and Peru." The ILZSG had, in October last year, forecast a 55,000 tonne surplus for lead and a 192,000-tonne zinc surplus in 2020.

Trading Ideas:
--Zinc trading range for the day is 197.2-206.4.
--Zinc settled flat paring gains as the Chinese economy is expected to grow 2.1% this year, its weakest pace in more than four decades.
--However downside seen limited as overseas zinc concentrate supply will get affected after soaring coronavirus cases prompted some countries to tighten restrictions.
--The global refined zinc market, meanwhile, will see a surplus of 620,000 tonnes in 2020, and a surplus of 463,000 tonnes in 2021.

Courtesy: Kedia Commodities
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