Zinc had a strong rally despite signs that producers in China were ramping up production. China's zinc output rose 23% to 1.17 million tons in March as small and medium-sized producers are producing at full capacity to take advantage of higher prices. Zinc yesterday we have seen that market has moved 2.14%. Market has opened at 107.3 & made a low of 106.55 versus the day high of 110.2. The total volume for the day was at 36272 lots and the open interest was at 4790.Now support for the zinc is seen at 107.6 and below could see a test of 105.2. Resistance is now likely to be seen at 111.2, a move above could see prices testing 112.5.

Trading Ideas:

Zinc trading range is 105.2-112.5.

Zinc had a strong rally despite signs that producers in China were ramping up production

China's zinc output rose 23% to 1.17 million tons in March

Zinc daily stock at Shanghai exchange came up by 1395 tonnes.

SELL ZINC APR @ 110 SL 111.10 TGT 109.10-108.40-107.80.MCX