Zinc on MCX settled up 0.43% at 152.10 gained as LME Zinc climbed 0.6 percent to settled at $2,290 a tonne on short covering as support seen since last week where prices got support after Chinese economic data indicated a firmer tone to the housing market and a revival in factory activity. Prices seen support in recent past as support seen from a recent report from the International Lead and Zinc Study Group found the global market for refined zinc was in deficit from January to July, with total reported inventories declining over the same time frame. Global zinc mine production declined 6.1% during the same period, which mostly was due to substantial reductions in India, Australia, Ireland and Peru. Meanwhile, world refined zinc metal output fell 3.9% due to a significant drop off in Indian production and a decline in the US. In the week ahead, market players will be turning their attention to fresh comments from Federal Reserve Chair Janet Yellen amid ongoing uncertainty over the timing of the next U.S. rate hike. Meanwhile, investors will be focusing on a pair of speeches from European Central Bank President Mario Draghi for fresh hints on whether the ECB will step up monetary stimulus in the coming months to boost inflation and prop up the economy. In addition, remarks by Bank of Japan Governor Haruhiko Kuroda will be eyed in wake of last week's decision by the BOJ to modify its policy framework. Technically market is under short covering as market has witnessed drop in open interest by -8.25% to settled at 6140, now Zinc is getting support at 150.4 and below same could see a test of 148.5 level, And resistance is now likely to be seen at 153.2, a move above could see prices testing 154.1.

Trading Ideas:

Zinc trading range for the day is 148.5-154.1.

Zinc prices gained after a report showed the global market for refined zinc was in deficit from January to July.

Global zinc mine production declined 6.1% during the same period, which mostly was due to substantial reductions in India, Australia, Ireland and Peru.

Meanwhile, world refined zinc metal output fell 3.9% due to a significant drop off in Indian production and a decline in the U.S.