Zinc settled down -0.19% at 128 with the lack of major news as the US financial markets were closed on Monday. No big news is expected to come out on Tuesday, and markets will continue to digest the results of Chinese economic data released yesterday. Market expectations over economic figures due in coming days may also affect market sentiment. The People’s Bank of China said yesterday to add funds to large commercial banks to meet cash demand for the upcoming Chinese New Year holiday using its Standing Leading Facility. Last week Zinc climbed after Barclays projected the markets will fall into the first deficit in more a decade in 2015. Zinc surplus is likely to shrink significantly this year that is also reinforced by falling LME inventories. Zinc stockpiles at the LME-monitored warehouses slumped 2.39% last week and almost 28% year-to-date. China’s GDP for Q4 2013 grew 7.6% YoY, slower than Q3’s pace but exceeding the 7.6% forecast, allowing the country to achieve its 7.5% full-year target. China’s GDP growth hit 7.7% through 2013. Consumption contributed 50% of GDP and investment 54.4%, and contribution from exports was a negative 4.4%. Technically market is under fresh selling as market has witnessed gain in open interest by 3.12% to settled at 2907 while prices down -0.25 rupee, now Zinc is getting support at 127.6 and below same could see a test of 127.1 level, And resistance is now likely to be seen at 128.6, a move above could see prices testing 129.1.

Trading Ideas:

Zinc trading range for the day is 127.1-129.1.

Zinc ended with small losses as China's economic data were stable and in line with market expectations.

China's Q4 GDP data fell short of Q4 but were better than expected, with market pessimism growing in the market.

Zinc daily stocks at Shanghai exchange came up by 100 tonnes