Zinc yesterday settled down -0.32% at 110.15 after data showed HSBC's July PMI for China released yesterday worsened, increasing concerns over demand for zinc. The MIIT stated China plans to push policies helping boost corporate power, easing market concerns and driving up LME zinc prices. July PMIs from Germany, France and euro zone topped expectations, which boosted LME zinc prices to soar to USD 1,909/mt. But as upbeat US new home sales and manufacturing PMI supported the US dollar index to strengthen. The euro zone's flash manufacturing PMI for July climbed to 50.1, the highest since May, 2011 and marking the first time in two years that the index rose above 50. Germany's flash manufacturing PMI for July hit a 5-month high at 52.8. Flash manufacturing PMI in France, though still below 50 at 48.8 in July, did cap forecasts and hit a 17-month high, suggesting recovery in the country's economy. Eurozone business expectations index jumped to a new 3-month high at 56.9 in July, implying enterprises in the euro zone are optimistic over economic outlook. These positive indicators drove the euro higher, providing upward momentum to base metals prices. Technically market is under fresh selling as market has witnessed gain in open interest by 1.24% to settled at 3185 while prices down -0.35 rupee, now Zinc is getting support at 109.50 and below same could see a test of 108.80 level, And resistance is now likely to be seen at 110.80, a move above could see prices testing 111.50.

Trading Ideas:

Zinc trading range for the day is 109-111.5.

Zinc dropped after data showed HSBC's July PMI for China released yesterday worsened, increasing concerns over demand for zinc

Data showed that manufacturing in China, lost momentum in July and that its job market weakened.

Zinc daily stocks at Shanghai exchange came down by 323 tonnes