Zinc settled up 0.56% at 126.30 as positive Chinese data and optimistic speech by Janet Yellen helped zinc prices to move higher. Data from China showed a huge increase in demand, well above market expectations. China’s exports climbed 10.6 per cent in January 2014 from the same month a year ago exceeding the 0.1 per cent estimated gain while imports grew 10 per cent signaling an easing slowdown in the world’s second biggest economy bolstering the demand outlook for the metal. US January retail sales unexpectedly dropped from a month ago, declining the most since June 2012, and Credit Suisse and Barclays both lowered forecasts for the nation’s Q4 GDP growth. The number of Americans filing new claims for unemployment benefits also rose as against previous level, and missed estimates. A slew of US economic data released overnight depressed markets to some extent. US retail sales unexpectedly fell by 0.4% from a month earlier during January, the biggest losses since June 2012, and December’s figures were also revised down.  Technically market is under fresh buying as market has witnessed gain in open interest by 3.31% to settled at 2561 while prices up 0.7 rupee, now Zinc is getting support at 125.8 and below same could see a test of 125.2 level, And resistance is now likely to be seen at 126.7, a move above could see prices testing 127.

Trading Ideas:

Zinc trading range for the day is 125.2-127.

Zinc gained  as positive Chinese data and optimistic speech by Janet Yellen helped zinc  prices to move higher.

The disappointing data stirred speculation the Federal Reserve will take a gradual approach to tapering its bond-buying stimulus this year.

Zinc daily stocks at Shanghai exchange came up by 248 tonnes