Zinc settled up 0.76% at 125.60 as support seen after upbeat trade data and record imports in China eased market concerns over slower growth of metal demand on Wednesday, while the US House of Representatives approved raising debt ceiling, lending support to markets. China's January trade data beat forecasts, with imports rising 10.0% YoY and exports up 10.6%, easing worries about waning demand from China. The US Senate also passed the bill on a 55-43 party line vote to increase the debt limit through March 2015. Besides, the US budget deficit was USD 10.4 billion in January, well below the USD 30.8 billion expected. St. Louis Fed President James Bullard also expressed optimism over the US economy. This may give a boost to US stocks. The European Central Bank (ECB) executive board member Benoit Coeuré said the ECB is considering very seriously taking its deposit rate into negative territory, causing the euro to fall by 0.34%. In addition, the euro zone industrial output for December missed forecasts. However, with the euro weakening against the dollar, buying interest for base metals may improve among euro zone investors. The US dollar index rose by 0.08%. Asian and European stock markets increased, but US stocks were mixed. Technically market is under fresh buying as market has witnessed gain in open interest by 7.78% to settled at 2479 while prices up 0.95 rupee, now Zinc is getting support at 125 and below same could see a test of 124.3 level, And resistance is now likely to be seen at 126.1, a move above could see prices testing 126.5.

Trading Ideas:

Zinc trading range for the day is 124.3-126.5.

Zinc climbed as the appetite for risk picked up following comments by new Fed Chair, while stronger-than-expected Chinese trade data was also being digested.

Chinese exports climbed 10.6% from a year earlier, beating expectations for a 2% increase and following a 4.3% gain in December.

Meanwhile, comments from Federal Reserve Chair Janet Yellen continued to support sentiment.