Zinc settled up 1.41% at 143.60 on the back of upbeat manufacturing data out of China and Europe that fuelled hopes for improving global demand for the metal. Also HSBC's July PMI for China announced yesterday was 52, and Germany's and euro zone July PMI also rose, boosting market sentiment. In addition, the number of US initial jobless claims last week hit an 8 and 1/2 year low. LME zinc prices opened at USD 2,361/mt overnight, and continued to rise to USD 2,380-2,390/mt, up 1%, then reaching a record high of USD 2,394/mt since August 5, 2011, and closing at USD 2,388.5/mt, up USD 23.5/mt or 0.99%. LME zinc inventories fell by 875 to 654,950 mt. Tempering the outlook for U. S growth, the International Monetary Fund on Wednesday said it expects the US economy to grow 1.7 percent in 2014, even more slowly than it predicted a month ago, as weakness in the first quarter offsets an expected pick-up in the second half of the year. Since lastweek Zinc failed to preserve its bullish trend but continued to vacillate near a 35-month high amid low LME inventories. LME stockpiles fell 0.5% last week, adding to a circa 39% decline year-to-date. Technically market is under fresh buying as market has witnessed gain in open interest by 5.06% to settled at 6245 while prices up 2 rupee, now Zinc is getting support at 142.4 and below same could see a test of 141.1 level, And resistance is now likely to be seen at 144.4, a move above could see prices testing 145.1.

Trading Ideas:

Zinc trading range for the day is 141.1-145.1.

Zinc gained as market sentiment boosted after data showed HSBC's July PMI for China announced yesterday was 52, and Germany's and euro zone July PMI also rose.

Market continued to digest upbeat data from China, and improving economic figures from the US also created impetus for commodity prices.

The Markit's preliminary US manufacturing PMI missed forecast in July and June's new home sales sank to a three-month low