Technically Zinc market is under fresh selling as market has witnessed gain in open interest by 22.11% to settled at 823 while prices down 0.65 rupees.
Now MCX Zinc is getting support at 279.2 and below same could see a test of 274.2 levels, and resistance is now likely to be seen at 288.6, a move above could see prices testing 293.
Zinc yesterday settled down by 0.23% at 284.1 as a drop in coal prices in China eased concerns of supply shortage in the metal.
China’s thermal coal futures slid 11%, extending losses since Tuesday when they toppled off record highs as Beijing signalled it would intervene to cool surging prices to help electricity producers out of a widespread power crunch.
On the macro front, the US jobless claims last week recorded 290,000, the lowest since the breakout of the COVID.The market again eyed on the timeline of Fed’s tapering bond purchases and interest rate hike amid an improving job market and the high inflation rate, and the risk aversion sentiment warmed up.
The initial manufacturing PMI reading for October across the Eurozone came in higher than expected, indicating an expanding economy and steady economic recovery.On the fundamentals, the social inventory of zinc ingots across the seven major markets in China totalled 147,300 mt, up 100 mt from Monday October 18 and 8,200 mt from last Friday October 15. The zinc social inventory has been at a historical low level despite the weekly increase, which will underpin zinc prices.
Trading Ideas:
–Zinc trading range for the day is 274.2-293.
–Zinc prices fell as a drop in coal prices in China eased concerns of supply shortage in the metal.
–The initial manufacturing PMI reading for October across the Eurozone came in higher than expected, indicating an expanding economy.
–The US jobless claims last week recorded 290,000, the lowest since the breakout of the COVID.
Courtesy: Kedia Commodities
Source: Comodity Online
