Zinc yesterday traded with the negative node and settled -2.06% down at 106.55 in the line of expectation and came under pressure as China’s Gross Domestic Product leaped, while the inflation pressure eased at a slower pace than expected during December, both improving speculations that China will take further tightening monetary policies.

In this context, the US dollar index fluctuated between 78.4 and 79, and LME zinc prices were down USD 60/mt, with prices finally closing at USD 2,335/mt, down 2.51%. In yesterday's trading session zinc has touched the low of 105.65 after opening at 108.65, and finally settled at 106.55. For today's session market is looking to take support at 105.2, a break below could see a test of 103.9 and where as resistance is now likely to be seen at 108.4, a move a move above could see prices testing 110.2.

Trading Ideas:

Zinc trading range is 103.9-110.2.

Zinc yesterday dipped -2.06% on pressure as China’s GDP leaped while inflation pressure eased at slower pace.

Zinc looks to take resistance at 107.80 and support is at 105.40 level.

Zinc daily stocks at Shanghai exchange came up by 3612 tonnes.

BUY ZINC JAN @ 106.55 SL 106 TGT 107.20-107.80.MCX (SHORT TERM)