Zinc settled down -0.75% at 125.20 finished mostly lower on demand concerns after the World Bank cut its global growth forecast in 2014. While overall outlook for Zinc is still firm as demand is on the rise. LME inventories dropped more than 35% year-to-date, while global markets recorded a 17,000 deficit in 2013, according to the ILSZG report. Also support can be seen as China has announced new measures aimed at bolstering its economic growth. These include plans to build railways, roads and airports along the Yangtze River - which connects China's less developed inland provinces to Shanghai. Meanwhile, China's central bank said it will encourage banks to lend more to exporters to boost shipments. The moves, the latest in a series of steps taken in recent weeks, come amid concerns over a slowdown in China's economy - the world's second-largest. China's economy expanded by 7.4% in the January-to-March period, from a year ago, down from 7.7% growth in the final quarter of last year. The US dollar index eased 0.01%, and the euro dipped 0.11% against the US dollar. The World Bank’s cut on its outlook for the global economic growth heaped pressure on global stock indices. Most Asia-Pacific shares ended up, but European and US shares dropped on Wednesday. LME base metals prices finished lower across the board. Technically market is under long liquidation as market has witnessed drop in open interest by -8.15% to settled at 2232 while prices down -0.95 rupee, now Zinc is getting support at 124.4 and below same could see a test of 123.5 level, And resistance is now likely to be seen at 126.6, a move above could see prices testing 127.9.

Trading Ideas:

Zinc trading range for the day is 123.5-127.9.

Zinc ended with losses as pressure seen after the World Bank lowered its expectations of global economic growth to 2.8%.

The housing vacancy rate in China’s cities and towns reached 22.4% in 2013, causing market concerns and depressing market sentiment.

Zinc daily stocks at Shanghai exchange came down by 603 tonnes.