Zinc market under fresh selling; Support seen at 182.4
Commodity Online | December 17 2018
UPDATED 12:11:34 IST

MCX Mentha Oil may trade between 1310.1-1371.3 levels

MCX Aluminium under fresh buying; Resistance seen at 144.2

MCX Nickel under short covering; Support seen at 859.6

MCX Zinc under fresh selling; Support seen at 202.9

NCDEX Chana under long liquidation; Resistance seen at 4457

Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 32.02% to settled at 3476 while prices down -3.15 rupees.

Now MCX Zinc is getting support at 182.4 and below same could see a test of 181.2 levels and resistance is now likely to be seen at 185.4, a move above could see prices testing 187.2.

Zinc dropped after China reported a set of weak data, fanning fresh worries of a sharp slowdown in the world's second-biggest economy and leaving investors fretting over the wider impact of a yet unresolved Sino-U.S. trade dispute.

China’s November retail sales grew at their weakest pace since 2003 and industrial output rose the least in nearly three years as the economy lost further momentum, heaping pressure on Beijing to defuse its trade dispute with the United States.

The world’s second-largest economy has been losing momentum in recent quarters as a multi-year government campaign to curb shadow lending put increasing financial strains on companies in a blow to production and investment.

China’s November industrial output grew 5.4 percent from a year earlier and retail sales increased 8.1 percent, missing forecasts, while fixed-asset investment rose slightly more than expected in the first 11 months, official data showed.

In January-November, fixed-asset investment grew 5.9 percent, compared with expectations for a 5.8 percent increase, and faster than the 5.7 percent pace in January-October. An expected surge in refined zinc output after a clutch of new mine openings has been derailed by bottlenecks at smelters across Asia, putting the brakes on an eye-watering price fall.

China's forced environmental cutbacks on zinc slag, or waste from the zinc smelting process, and falling refined prices in the second quarter, prompted many smelters to cut production.

Trading Ideas:
--Zinc trading range for the day is 181.2-187.2.
--Zinc settled down after China reported a set of weak data, fanning fresh worries of a sharp slowdown in the world's second-biggest economy.
--National Bureau of Statistics of China: Economic indicators show big downward pressure, China, US trade row hasn't affected stable economic growth.
--WBMS Global Zinc Statistics: 52,300 Ton Deficit Jan to Sep 2018

Courtesy: Kedia Commodities

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