Zinc suffered a sharp setback after speculators booked profits amid weak trend overseas. Apart from profit-booking by speculators and weakening trend in base metals overseas after a report that regulators may be investigating large futures positions in Shanghai, led to a fall in zinc prices. Zinc yesterday we have seen that market has moved -1.66%. Market has opened at 99.3 & made a low of 97.25 versus the day high of 99.8. The total volume for the day was at 19345 lots and the open interest was at 6810.Now support for the zinc is seen at 96.7 and below could see a test of 95.7. Resistance is now likely to be seen at 99.3, a move above could see prices testing 100.8.

Trading Ideas:

Zinc trading range is 95.7-100.8.

Zinc suffered a sharp setback after speculators booked profits amid weak trend overseas

Resistance for zinc is seen at 99.30 and support is at 96.70.

Zinc weekly stock at Shanghai exchange came up by 1719 tonnes.