Technically Zinc market is under short covering as market has witnessed drop in open interest by 8.57% to settled at 3706 while prices up 2.5 rupees.
Now MCX Zinc is getting support at 202.8 and below same could see a test of 200.3 levels and resistance is now likely to be seen at 207.3, a move above could see prices testing 209.3.
Zinc on MCX settled up 1.23% at 205.20 gained on short covering and tracking LME zinc which rose 0.5 percent to$3,131.50 a tonne as investors wagered the latest U.S.-led strike on Syria would not escalate into a wider conflict, though Asian equities turned mixed as selling in bank shares slugged Chinese indexes.
China likely carried most of its strong economic momentum from last year into the first quarter of 2018, with government crackdowns on financial risks and industrial pollution dragging less on activity than earlier expected.
Today China's data was out suggesting economy will grew 6.8 percent in the first quarter of 2018, the statistics bureau reported on Tuesday. That topped a consensus estimate of 6.7 percent year-over-year growth for the quarter.
Now metals traders will be keeping a close eye on geopolitical developments in the coming week amid heightened tensions between the U.S. and Russia in the wake of U.S.-led missile strikes on Syria and the latest round of U.S. sanctions on Russia.
Traders will also be looking ahead to U.S. economic reports, in particular a slate of Fed speakers that may fuel U.S. dollar volatility which could impact metal.
--Zinc trading range for the day is 200.3-209.3.
--Zinc gains as support seen after an emergency response to the heavily-polluted weather in the Beijing, Tianjin and Hebei area.
--China’s State Reserve Bureau may release 50,000-60,000 mt of zinc ingot to be received by some state-owned enterprises.
--South Korea is seeking to buy a total 1,500 tonnes of zinc for July arrival via separate tenders, the state-run Procurement Service said
Courtesy: Kedia Commodities