MCX Copper under long liquidation; Support seen at 447.3
MCX Natural Gas under fresh buying; Resistance seen at 202.4
MCX Crude Oil under fresh selling; Support seen at 3819
MCX Nickel under fresh selling; Support seen at 907
MCX Aluminium under long liquidation
Technically Zinc market is under long liquidation as market has witnessed drop in open interest by 2.7% to settled at 3965 while prices down 1.25 rupees.
Now MCX Zinc is getting support at 189.5 and below same could see a test of 187.5 level, And resistance is now likely to be seen at 193.1, a move above could see prices testing 194.7.
Zinc on MCX settled down 0.65% at 191.45 after trade data from China pointed to a slowing economy despite recent stimulus measures, denting demand expectations. China’s exports fell by the most in three years in February while imports fell for a third straight month, pointing to a further slowdown in an economy which is at its weakest in almost 30 years.
U.S President Donald Trump said that talks aimed at ending a long-standing trade conflict with China were moving along well after he postponed a sharp U.S. tariff hike slated for early March. China sought to shore up its slowing economy through billions of dollars in planned tax cuts and infrastructure spending, with economic growth hit by softer domestic demand and a trade war with the United States.
But the impact of stimulus on the slowing Chinese economy is due to take six to nine months to flow through to demand for industrial metals, giving a boost to prices in the second half of the year. Shortages for a fourth year running and historically low stocks of zinc are likely to propel prices of the metal to $3,000 a tonne over coming months, while an end to the U.S.-China trade dispute could spur even more gains.
Research firm Antaike says China’s refined zinc output saw its steepest plunge since 2013 last year, partly due to tight raw material supply and longer maintenance periods.
–Zinc trading range for the day is 187.5-194.7.
–Zinc dropped after trade data from China pointed to a slowing economy despite recent stimulus measures, denting demand expectations.
–China’s exports fell by the most in three years in February while imports fell for a third straight month.
–China’s refined zinc output saw its steepest plunge since 2013 last year, partly due to tight raw material supply and longer maintenance periods.