Zinc yesterday settled up 1.18% at 103 after U. S. home prices posted their biggest annual increase in seven years in March, stocking hopes of greater demand from the US. The Standard & Poor's Case-Shiller home-price index of 10 major metropolitan areas grew 10.3% in March from a year earlier, while the 20-city index improved 10.9%. This was the biggest annual increase since 2006 and points to continued recovery in the U. S. real-estate market. Basemetals traders are now looking ahead to the release of U. S. economic reports later in the day, as well as Chinese data slated for later in the week. US home prices jumped 10.9% in March compared with a year ago, the highest level in seven years. The Conference Board's Consumer Confidence Index rose to 76.2 in May. These positive data are a sign of sustained improvement in the US economy, but also raised worries that the US Federal Reserve will scale back QE3 soon. In response, US shares and US dollar index both rose, eating into gains of base metals. Technically market is under short covering as market has witnessed drop in open interest by -7.22% to settled at 4536 while prices up 1.2 rupee, now Zinc is getting support at 101.83 and below same could see a test of 100.60 level, And resistance is now likely to be seen at 103.78, a move above could see prices testing 104.50.

Trading Ideas:

Zinc trading range for the day is 100.67-104.57.

Zinc gained as rising Consumer Confidence Index in May and home prices in the US in March eased market worries.

World Zinc surplus at 140700 tonnes in first quarter of 2013: WBMS

Zinc daily stocks at Shanghai exchange came down by 1022 tonnes