Zinc yesterday traded with the positive node and settled 0.14% up at 111.1 on weakness in dollar index which further dipped to 79. Asian market was quiet before the Chinese New Year, in addition to this market is speculating that China will further tighten monetary policies continue in the market. In this context, LME zinc prices overnight fell slightly and finally closed at USD 2,453/mt, down USD 11/mt, with prices still standing above all the daily moving averages. In yesterday's trading session zinc has touched the low of 110.45 after opening at 110.8, and finally settled at 111.1. For today's session market is looking to take support at 110.6, a break below could see a test of 110 and where as resistance is now likely to be seen at 111.6, a move above could see prices testing 112.

Trading Ideas:

Zinc trading range is 110-112.

China will release major economic data and can further tighten monetary policies.

Zinc looks to take resistance at 112 and support is at 110.60 level.

Zinc daily stocks at Shanghai exchange came up by 903 tonnes

BUY ZINC JAN @ 109.50 SL 108.50 TGT 110.20-111-112.MCX