Zinc yesterday traded with the negative node and settled -0.43% down at 103.5 as market concerns over the Greek debt issues accelerated. European leaders warned Greece that it could not remain in the euro zone, if it fails to stick to its debt rescue deal. Besides, the euro-zone industrial output fell unexpectedly in March by 0.3%, verifying market worries over economic activities in the region. In this context, LME zinc prices tumbled, pointing to USD 1,900/mt, and finally ended at USD 1,917.8/mt, down USD 23.8/mt. Political uncertainty in Greece led to panic overnight that Greece may finally exit the euro zone. The euro plunged against the dollar, helping the US dollar index surging. Metals shed heavy losses as a result.On Monday, the positive news of China’s RRR cut was overshadowed by fears on the European crisis, causing selloff in metal markets. The failed attempts by Greece’s major parties of organizing coalition government placed the country in greater risk of exiting euro zone.In yesterday's trading session zinc has touched the low of 103.15 after opening at 103.85, and finally settled at 103.5. For today's session market is looking to take support at 103.1, a break below could see a test of 102.8 and where as resistance is now likely to be seen at 103.9, a move above could see prices testing 104.3.

Trading Ideas:

Zinc trading range for the day is 102.77-104.27.

Zinc ended lower as market concerns over the Greek debt issues accelerated

European leaders warned Greece that it could not remain in the euro zone, if it fails to stick to its debt rescue deal.

Base metals neglected positive news that China’s central bank will cut RRR, and reignited concerns over the debt issues