Zinc yesterday traded with the negative node and settled -1.68% down at 110.10 tracking LME zinc prices which dragged down by the rising US dollar index. Due to growing concerns over Spain and Greece, and as US home presale volume fell in August, LME zinc prices dropped below $2,100/mt, and once dipped to $2,075/mt. Finally, LME zinc prices closed at $2,083.5/mt, down -2.14%. European stocks and the global equities slipped after angry protesters in Greece and Spain who opposed the new austerity measures clashed with police. The demonstrations in the Greece and Spain fueled renewed concern over the European debt crisis and global economic growth outlook. In response, investors sold off base metals and other risk assets. Also support can be seen on positive news that South Korea bought 500 tonnes of zinc via a tender from Korea Zinc Inc at $164 per tonne over London Metal Exchange (LME) prices, the state-run Public Procurement Service (PPS) said, this will create positive sentiments in the market. In yesterday's trading session zinc has touched the low of 109.95 after opening at 111.75, and finally settled at 110.1. For today's session market is looking to take support at 109.3, a break below could see a test of 108.4 and where as resistance is now likely to be seen at 111.7, a move above could see prices testing 113.2.

Trading Ideas:

Zinc trading range for the day is 108.4-113.2.

Zinc ended lower dragged down by the rising US dollar index.

The demonstrations in Greece and Spain fueled renewed concern over Euro debt crisis and global economic growth

Aid to Spain and Greece met resistance, aggravating the debt crisis in the euro zone.