Zinc ended down extending losses following weak trend in overseas market.  Overall, trend still remains weak as market digests U.S. President Barack Obama's proposals to limit banks' financial risks. Zinc yesterday traded with the negative node and settled -0.65% down at 107.35. Some pressure had been seen from the LME stock also which came down by 1100mt, the total stock at LME is now at 491200mt. In yesterday's trading session zinc has touched the low of 107.25 after opening at 108, and finally settled at 107.35. For today's session market is looking to take support at 107.00, a break below could see a test of 106.70 and where as resistance is now likely to be seen at 107.80, a move above could see prices testing 108.20. Spread between zinc JAN & FEB contracts yesterday ended at 0.85. Spread yesterday traded in the range of 0.75 - 0.85.

Trading Ideas:

Zinc trading range is 103-111.

Zinc ended down extending losses following weak trend in overseas market

Spread yesterday traded in the range of 0.75 - 0.85.

Zinc weekly stock at Shanghai exchange came unchanged at 222900 tonnes.

BUY ZINC JAN @ 107 SL 106.10 TGT 107.60-108.30-109.10.MCX