Zinc settled down -2.35% at 139.10 finished lower on demand concerns after China's industrial production and new credit grew less than forecast in July. China's industrial production rose by 9.0% y/y in July, down from forecasts and June's reading of 9.2%, while fixed asset investment (FAI) advanced 17.0% ytd y/y, below market estimates of 17.4% and down from 17.3% in June. Retail sales grew 12.2% y/y in July, below expectations of 12.5%. Meanwhile, Chinese bank lending and money supply growth for July also came in below expectations, underlining concerns about slowing growth in the world's biggest consumer of the industrial metal. Chinese new loans dropped to 385.2 billion yuan last month from 1.08 trillion yuan in June and missed forecasts of 780 billion yuan. The broad M2 money supply rose 13.5% on year in July, compared to growth of 14.7% a month earlier and below forecast for a 14.5% increase. China's total social financing aggregate, a broad measure of liquidity in the economy, fell to 273.1 billion yuan in July, the lowest monthly reading since October 2008. Zinc lost some of its previous gains last week, due to the arising tensions in the Gaza Strip, closing on Friday at $2290. The escalation of the unrests should continuously be the most important catalyst for Zinc and also other industrial metals. Nonetheless, Zinc has increased more than 12% last six months. Technically market is under long liquidation as market has witnessed drop in open interest by -18.92% to settled at 4612 while prices down -3.35 rupee, now Zinc is getting support at 138 and below same could see a test of 136.9 level, And resistance is now likely to be seen at 141.2, a move above could see prices testing 143.3.

Trading Ideas:

Zinc trading range for the day is 136.9-143.3.

Zinc dropped dragged down by disappointing data on China's property sector which raised concerns about the outlook for the metal.

A report showed that Chinese retail sales rose by a smaller-than-forecast 12.2% last month, compared to a 12.4% gain in June.

Official trade data released showed that China's copper arrivals fell 2.9% month-on-month in July, declining for a third straight month.