Zinc market fundamentals likely to remain soft this year, price vulnerable to downward correction in next few months after recovering strongly in line with other base metals during 2009. Zinc yesterday we have seen that market has moved 0.1%. Market has opened at 103.3 & made a low of 103.3 versus the day high of 103.6. The total volume for the day was at 456 lots and the open interest was at 3686.Now support for the zinc is seen at 103.4 and below could see a test of 103.2. Resistance is now likely to be seen at 103.7, a move above could see prices testing 103.8.

Trading Ideas:

Zinc trading range is 103.2-103.8.

Zinc market fundamentals likely to remain soft this year

Support for the zinc is at 102.40 and resistance is at 104.60.

Zinc weekly stock at Shanghai exchange remained unchanged at 223,433 tons.

SELL ZINC MAR @ 104 SL 105.20 TGT 103.40-102.70-102.20.MCX