Zinc settled flat at 122.1 as a weaker-than-expected reading of U. S. economic growth prompted some investors to reduce positions. Hopes that authorities in China, would enact measures to boost the country's slowing economy and signs of stronger business activity in the U. S. Data showing the U. S. economy contracted during the first quarter sent prices lower. Gross domestic product, the broadest measure of goods and services produced by the economy, contracted at a seasonally adjusted annual rate of 1.0% in the first three months of 2014. The revised Thomson Reuters/University of Michigan consumer sentiment index ticked up to 81.9 this month from 81.8 in April, missing market expectations for a reading of 82.5. Consumer sentiment would suffer more if the economy failed to rebound in the months ahead, though the survey revealed that consumers feel the economy will be strong enough to produce more jobs in the year ahead. Elsewhere, the Commerce Department reported that personal spending in the U. S. fell 0.1% last month, compared to expectations for a 0.2% rise, after a 1.0% increase in March, whose figure was revised from a previously estimated 0.9% gain. U. S. core personal consumption expenditures, which exclude food and energy, rose 0.2% in April, in line with expectations, after a 0.2% increase the previous month. Technically market is under fresh selling as market has witnessed gain in open interest by 57.24% to settled at 1640 while prices remain unchange0 rupee, now Zinc is getting support at 121.3 and below same could see a test of 120.4 level, And resistance is now likely to be seen at 122.8, a move above could see prices testing 123.4.

Trading Ideas:

Zinc trading range for the day is 120.4-123.4.

Zinc settled flat as a weaker-than-expected reading of U. S. economic growth prompted some investors to reduce positions.

Hopes that authorities in China, would enact measures to boost country's slowing economy and signs of stronger business activity in the U. S.

Zinc weekly stocks at Shanghai exchange came down by 8302 tonnes.