Zinc settled flat at 133.5 but prices gained on weekly basis propelled by expectations of a supply deficit and momentum based buying after clearing a key hurdle on charts. From the latest round of global manufacturing reports to a pick up in car sales in the United States, encouraging signals on global economic health have burnished the outlook for metals.

As per the data revealed by the US Geological Survey (USGS), the zinc mine production by the country during the first quarter of the year totaled 207,000 tons, 19% higher when compared with the output during Q1 2013. The smelter, refined production during the quarter totaled 53,900 metric tons. For the month of March alone, the recoverable zinc production surged significantly higher by 26% to 70,600 metric tons. The production had totaled 56,000 metric tons during March last year.

The average daily recoverable zinc mine production soared 26% higher during Q1 this year when compared with the corresponding quarter the previous year. According to USGS data, the LME stocks of special high-grade zinc in the US totaled 729,275 metric tons, falling by nearly 17% from 874,350 metric tons in March 2013. In the US, the nonfarm payrolls report released late on Thursday showed that the country's employers added 288,000 new jobs in June, well above expectations for an increase of 215,000. The job creation has exceeded the 200,000 mark for a fifth straight month.

Technically market is under fresh selling as market has witnessed gain in open interest by 0.04% to settled at 4774, now Zinc is getting support at 133.2 and below same could see a test of 132.7 level, And resistance is now likely to be seen at 134.1, a move above could see prices testing 134.5.

Zinc trading range for the day is 132.7-134.5.

Zinc settled flat but prices gained on weekly basis propelled by expectations of a supply deficit and momentum based buying

US non-farm employment in June topped market expectations, standing above 200,000 for the fifth straight month.

Zinc weekly stocks at Shanghai exchange came up by 4456 tonnes.

Warehouse stock for Zinc at LME was at 664650mt that is down by -950mt.

SELL ZINC JULY BELOW 133.25 SL 134.20 TGT 132.70-131.80. MCX