Zinc settled up 0.91% at 127.65 as investors and speculators booked fresh positions in the industrial metal as upbeat Chinese credit growth data signaled an economic rebound in the world’s biggest metals consumer lifting the demand outlook for industrial metals. New local currency loans stood at 1.32 trillion yuan in January up from 482.5 billion yuan in the previous month. Further aggregate financing the broadest measure of credit stood at a better than expected 2.58 trillion yuan last month. The Federal Reserve's stimulus taper and China's slowdown, twin factors behind this year's emerging market sell-off, will come firmly into view in the week ahead with minutes from the former and a leading survey on the latter. Zinc continued to trade in the positive side as falling LME stocks signal that demand for the metal remains strong. Another clue of rising consumption is the recent ILZSG forecast that global surplus will narrow by 5,000 tonnes this year. Trade volumes were expected to remain light on Monday, with Comex floor trading remaining closed for the U.S. President’s Day holiday. All electronic trades placed will register on Tuesday, when the market resumes normal trading hours. Technically market is under fresh buying as market has witnessed gain in open interest by 4.56% to settled at 3300 while prices up 1.15 rupee, now Zinc is getting support at 126.9 and below same could see a test of 126.1 level, And resistance is now likely to be seen at 128.2, a move above could see prices testing 128.7.

Trading Ideas:

Zinc trading range for the day is 126.1-128.7.

Zinc gained amid speculation demand from top consumer China will increase after data pointed to an improvement in Chinese credit growth.

Last week data showed that U.S. industrial production fell 0.3% from a month earlier in January, compared to expectations for a 0.3% gain.

Zinc daily stocks at Shanghai exchange came up by 2205 tonnes