Technically Zinc market is under short covering as market has witnessed drop in open interest by 2.07% to settled at 1370 while prices up 3.15 rupees.
Now MCX Zinc is getting support at 268.6 and below same could see a test of 264.7 levels, and resistance is now likely to be seen at 275.8, a move above could see prices testing 279.1.
Zinc yesterday settled up by 1.17% at 272.3 after monetary policy easing by China’s central bank and climbing imports into the world’s top metals consumer.
The People’s Bank of China said it would cut the amount of cash that banks must hold as reserves, releasing the funds in long-term liquidity to bolster slowing economic growth.
Chinese imports rose 31.7% in November, beating the 19.8% rise in October and well above a forecast for a 20.6% gain. China’s foreign exchange reserves unexpectedly rose in November, official data showed, even as the dollar posted a gain against a basket of major currencies.
The country’s foreign exchange reserves the world’s largest rose by $4.77 billion to $3.222 trillion last month, compared with $3.212 trillion forecast and $3.218 trillion in October. The value of China’s gold reserves rose to $113.03 billion at the end of November from $110.83 billion at end-Oct.
In the spot market, spot premiums in Shanghai trended up as the warehouses in Ningbo were closed for COVID control, but the downstream still purchased on rigid demand. On the supply side, the smelters in Hunan and Shaanxi will cut their output. The total output in December may fall short of expectation.
Trading Ideas:
–Zinc trading range for the day is 264.7-279.1.
–Zinc prices rose after monetary policy easing by China’s central bank and climbing imports into the world’s top metals consumer.
–PBOC said it would cut the amount of cash that banks must hold as reserves, releasing the funds in long-term liquidity to bolster slowing economic growth.
–Chinese imports rose 31.7% in November, beating the 19.8% rise in October and well above a forecast for a 20.6% gain.
Courtesy: Kedia Commodities
Source: Comodity Online
