Zinc yesterday traded with the range bound node and settled flat at 111.2 as dollar index overnight rallied to 79.4, up from 79.  However, the US Factory Orders jumped 0.7% during November, following a drop of 0.7% in October, while the forecast was a 0.3% decrease. LME zinc prices overnight finally closed at USD 2,448/mt, up USD 41/mt. The total stock at LME is now at 701425mt. In yesterday's trading session zinc has touched the low of 109.5 after opening at 110.9, and finally settled at 111.2. For today's session market is looking to take support at 109.7, a break below could see a test of 108.1 and where as resistance is now likely to be seen at 112.6, a move above could see prices testing 114. Spread between zinc JAN & FEB contracts yesterday ended at 1.2 we. Spread yesterday traded in the range of 1 - 1.5.

Trading Ideas:

Zinc trading range is 108.1-114.

China's zinc prices are firm since buyers begin to build stock before the Spring Festival.

Zinc looks to have a support at 110 level and resistance at 112.60.

Zinc daily stocks at Shanghai exchange came up by 1924 tonnes

SELL ZINC @ 111-111.40 SL 112.20 TGT 110.20-109.60-108.50.MCX (STBT)

YESTERDAY LME STOCK FOR ZINC CAME DOWN  BY 0