Zinc yesterday traded with the negative node and settled -1.56% down at 112.4 as US dollar index overnight moved between 78.3 and 78.6. However, China' CPI for Jan was up 4.9% YoY, the highest level in 10 years. Meanwhile, England's CPI for Jan was up 4%, doubling the target ceiling of 2% set by Ecb in early 2011, and also the highest level since November 2008.

Such inflation figure in both China and England accelerated speculations that major economies will take additional tightening policies such as interest rate hike. In this context, LME zinc prices overnight fell by USD 30/mt, and finally closed at USD 2,475/mt above the 10-day moving average. For today's session market is looking to take support at 111.5, a break below could see a test of 110.5 and where as resistance is now likely to be seen at 114.2, a move above could see prices testing 115.9.

Trading Ideas: Zinc trading range is 110.5-115.9. Zinc dropped on profit booking amid weak trend at spot market on sluggish demand Zinc looks to take resistance at 113.60 and support is at 111.20 level. Zinc daily stocks at Shanghai exchange came up by 9461 tonnes. YESTERDAY LME STOCK FOR ZINC CAME DOWN BY -50