Zinc's current weakness likely to turn around by end-2010 in spite of likely market surplus, but metal vulnerable to swings in views of global economy. Zinc yesterday we have seen that market has moved -1.38%. Market has opened at 84.9 & made a low of 83.05 versus the day high of 85.8. The total volume for the day was at 24188 lots and the open interest was at 7089.Now support for the zinc is seen at 82.3 and below could see a test of 81.3. Resistance is now likely to be seen at 85.1, a move above could see prices testing 86.8.

Trading Ideas:

Zinc trading range is 81.3-86.8.

Zinc weakness set to turn around by end 2010

Resistance for zinc is seen at 82.30 and support is at 85.10.

Spread between zinc JUN & JUL contracts yesterday traded in the range of 0.9 - 1.25.

SELL ZINC JUNE BELOW 82.80 SL 83.80 TGT 81.80-80.20.MCX