Zinc settled down -1.88% at 120.1 due to Syrian situation and expectations that the Fed will scale back QE3, selling pressure mounted. Euro zone Sentix's investor confidence index in September rose sharply to 6.5, a record high since May 2011; Banque de France raised Q3 GDP growth from 0.1% to 0.2%, indicating continued recovery of European economy. The Chinese NBS said earlier that consumer price inflation rose 2.6% in August, in line with expectations and slowing from 2.7% in July. The inflation report came one day after data showed that China's trade surplus widened to $28.6 billion from a surplus of $17.8 billion in July, compared to estimates for a surplus of $20 billion. Chinese exports rose 7.2% from a year earlier in August, beating expectations for a 6% increase and following a 5.1% gain in July. However, imports of crude oil fell to a six-month low of 21.43 million tonnes in August, 17.9% lower from July. Investors continued to speculate over the timing of the Fed's widely expected reduction in monthly bond purchases following Friday's weaker-than-forecast US jobs report. The Department of Labor said that the US economy added 169,000 jobs in August, fewer than the 180,000 forecast by economists and jobs growth for the two previous months was also revised lower. The report sparked renewed uncertainty over whether the Fed will start to unwind its $85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18. Technically market is under fresh selling as market has witnessed gain in open interest by 2.63% to settled at 2923 while prices down -2.3 rupee, now Zinc is getting support at 119.3 and below same could see a test of 118.5 level, And resistance is now likely to be seen at 121.6, a move above could see prices testing 123.1.

Trading Ideas:

Zinc trading range for the day is 118.5-123.1.

Zinc settled down due to Syrian situation and expectations that the Fed will scale back QE3, selling pressure mounted

Chinese data due out this week is expected to confirm that Beijing has prevented a sharp slowdown in its economy

Euro zone Sentix's investor confidence index in September rose sharply to 6.5, a record high since May 2011