Zinc settled up 0.53% at 141.05 finished mostly higher as investors returned to risk assets after tensions seemed to ease in Iraq, Gaza and Ukraine. While higher side prices will be capped before July industrial production and retail sales data from China, the world's biggest consumer of industrial metals. China's factory output probably rose 9.2 percent in July from a year earlier, the same pace as in June, while retail sales growth accelerated to 12.5 percent from 12.4 percent a month earlier. Lastweek Zinc reversed its gains in the week ending July 25 despite the deficit in the its supply. However, the light metal is 4% up on month amid such factors as improving macroeconomic outlook, foreseen supply deficit and decreasing inventories. Zinc ended the last week at $2342, down from its weekly high at $2409.25 on 27 July. The market will remain cautious ahead of economic indicators releases in the latter half of the week. As investors will be looking ahead to some Fed speeches and data on U. S. retail sales and consumer sentiment during this week. The U. S. Commerce Department's data on business inventories, data on import and export prices from the Labor Department are due. Also due this week are the Federal Reserve's industrial production report for July, the results of New York Federal Reserve's manufacturing survey and weekly jobless claims data. Technically market is under fresh buying as market has witnessed gain in open interest by 6.69% to settled at 5134 while prices up 0.75 rupee, now Zinc is getting support at 139.9 and below same could see a test of 138.6 level, And resistance is now likely to be seen at 142.2, a move above could see prices testing 143.2.

Trading Ideas:

Zinc trading range for the day is 138.6-143.2.

Zinc settled with gains warmed by expectations that China may continue to stimulate its economy.

China released data over the weekend that showed the pace of inflation remains relatively subdued.

Zinc daily stocks at Shanghai exchange came up by 157 tonnes.