Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 28.37% to settled at 14672 while prices down 2.5 rupees.
Now MCX Zinc is getting support at 161.5 and below same could see a test of 160.3 level, and resistance is now likely to be seen at 164.4, a move above could see prices testing 166.10.
Zinc on MCX settled down 1.51% at 162.60 renewed concern over the virus spreading outside of China. Commodity markets’ main source of influence continues to be the news flow related to the Covid-19 virus and the potential risk of it spreading further across Asia and beyond.
China, already reeling from the economic and human impact, is struggling to return to work. The tentative recovery in key commodities such as base metals and crude oil during the past couple of weeks was amongst other things driven by the narrative that the economic impact would primarily be a Q1 event.
With the virus continuing to spread outside of China, this narrative has given way to renewed concerns of the virus having a prolonged and negative impact on the global economy. Sentiments will remain weak for base metals cruised mostly lower, as a spike in new cases from the coronavirus epidemic in South Korea refuelled investor anxiety.
South Korea reported 52 new cases of coronavirus on Friday, taking up the national total to 156, making it the worst-infected country outside of China. That renewed concern is spreading in South Korea, Singapore and other Asian economies. Mounting risk aversion boosted demand for safe-havens, with US gold futures hitting seven-year highs.
--Zinc trading range for the day is 162.8-168.6.
--Zinc dropped on renewed concern over the virus spreading outside of China.
--Commodity markets’ main source of influence continues to be the news flow related to the Covid-19 virus.
--Sentiments will remain weak for base metals cruised mostly lower, as a spike in new cases.
Courtesy: Kedia Commodities