Sentiment remains weak in the zinc market on potential for steel demand growth in China to slow, thereby impacting zinc demand from galvanized steelmakers. LME inventories have been steadily rising over the past five months. Zinc yesterday we have seen that market has moved -1.61%. Market has opened at 81.7 & made a low of 79.95 versus the day high of 82.5. The total volume for the day was at 29723 lots and the open interest was at 7865.Now support for the zinc is seen at 79.6 and below could see a test of 78.5. Resistance is now likely to be seen at 82.2, a move above could see prices testing 83.6.

Trading Ideas:

Zinc trading range is 78.5-83.6.

Sentiment remains weak in zinc market on potential for steel demand growth in China to slow

Resistance for zinc is seen at 82.20 and support is at 79.60.

Zinc daily stock at Shanghai exchange came down by -2400 tonnes.

SELL ZINC JUNE @ 81.50 SL 82.80 TGT 80.50-79.50.MCX