Zinc yesterday traded with the positive node and settled 0.25% up at 100.8tracking other base metals on MCX after prices dropped Friday due to stronger US dollar index and the number of US non-farm employment in August was close to July’s level, also weighing down zinc prices. Zinc users in Europe are confident they will continue to secure the metal they need, although they will have to pay higher premiums as regional supplies are relatively tight, despite a global glut. Zinc stockpiles dropped 2,339 tons to 415,445 tons, based on a survey of 15 warehouses in Shanghai, Guangdong and Zhejiang, while lead stored in the warehouses rose 3,279 tons to 64,647 tons, the data showed. In yesterday's trading session zinc has touched the low of 99.95 after opening at 100.35, and finally settled at 100.8. For today's session market is looking to take support at 100.2, a break below could see a test of 99.5 and where as resistance is now likely to be seen at 101.3, a move above could see prices testing 101.7.

Trading Ideas:

Zinc trading range is 99.5-101.7.

Zinc yesterday traded with the positive node and settled 0.25% up tracking other base metals

Zinc users in Europe are confident they will continue to secure the metal they need

Zinc weekly stocks at Shanghai exchange came down by 2339 tonnes