MCX Zinc likely to move in a range of 190.2-200.4

Technically MCX Zinc market is getting support at 192.5 and below same could see a test of 190.2 level, And resistance is now likely to be seen at 197.6, a move above could see prices testing 200.4.

Zinc on MCX settled down 1.09% at 194.85 dropped on long liquidation tracking weakness from LME Zinc prices which closed lower by 1.4 percent as zinc stocks rose slightly by 225 to 112,725 tons retreated from a seven-month high touched on Tuesday, ending 1.3 per cent lower at $US2704.

Meanwhile trade talks between Senior U.S. and Chinese officials are poised to start another round of trade talks in Beijing next week to push for a deal to protect American intellectual property and avert a March 2 increase in U.S. tariffs on Chinese goods, two people familiar with the plans said.

China’s factory activity shrank by the most in almost three years in January as new orders slumped and output fell, a private survey showed, reinforcing fears that a slowdown in the world’s second largest economy was deepening.

Also President Donald Trump in his State of the Union speech on Tuesday vowed to build a border wall that is a source of a deep partisan divide and said Democratic attempts at “ridiculous partisan investigations” could damage U.S. prosperity.

Now market players looked ahead to comments from Federal Reserve Chair Jerome Powell for further hints about the outlook for monetary policy in the months ahead. The U.S. central bank last week signaled that its three-year drive to tighten monetary policy is close to an end due to rising headwinds to the economy.

Meanwhile, markets digested U.S. President Donald Trump’s State of the Union address on Tuesday, in which he raised the prospect of another shutdown should his demand for border wall funding not be met.

Trading Ideas:
–Zinc trading range for the day is 190.2-200.4.
–Zinc dropped on profit booking after prices gained on concerns over shortages due to falling stocks and delays to new capacity in top producer China.
–Stocks of zinc at 112,500 tonnes are less than half the levels seen last August.
–Concern about nearby zinc supplies has been fuelled by one company holding between 50 percent and 79 percent of LME zinc warrants and cash contracts.

Courtesy: Kedia Commodities