Zinc on MCX settled up 1.27% at 168.1 on short covering after prices dropped recently as data showed Chinese mine supply surged by nearly a fifth last year. The global zinc market moved into a surplus of 19,800 tonnes in February from a deficit of 22,300 tonnes in January, data from ILZSG showed. In the first two months of the year, the zinc market was in a deficit of 2,000 tonnes versus a surplus of 44,000 tonnes in the same period last year. Zinc continues to see plenty of sellers lined up on every rally amid increasingly aggressive CTA selling and ongoing long liquidation. Chinese consumer prices weakened further in March, but were little changed compared to a year ago, while producer prices rose at a steady pace. Beijing’s official consumer price index (CPI) rose 0.9% from a year ago, after slowing to 0.8% in February, the National Bureau of Statistics said in a report on Wednesday. UK consumer prices rose 0.4% in March compared with expectations of a 0.3% increase and the year-on-year rate was unchanged at 2.3%. The annual rate was in line with consensus forecasts and equalled the highest rate since September 2013. The core inflation rate declined to 1.8% from 2.0% and compared with expectations of a smaller decline to 1.9%. Technically market is under short covering as market has witnessed drop in open interest by -19.09% to settled at 5202 while prices up 2.1 rupees, now Zinc is getting support at 166.1 and below same could see a test of 164.1 level, And resistance is now likely to be seen at 169.2, a move above could see prices testing 170.3.

Trading Ideas:

Zinc trading range for the day is 164.1-170.3.

Zinc gained on short covering after prices dropped recently as data showed Chinese mine supply surged by nearly a fifth last year.

The global zinc market moved into a surplus of 19,800 tonnes in February from a deficit of 22,300 tonnes in January, data from ILZSG showed.

In the first two months of the year, the zinc market was in a deficit of 2,000 tonnes versus a surplus of 44,000 tonnes in the same period last year.