Zinc yesterday settled up 0.31% at 112.20 as support seen after the Employment in the US private sector continued to grow in June and initial jobless claims last week fell, both better than forecasts. Improving US labor market offset worries over political turmoil in Portugal, pushing US shares up slightly. But concerns over European debt crisis increased again due to Portugal political chaos. Portugal Foreign Affairs Minister and right-wing Portuguese People's Party leader Portas submitted his resignation, and if he resigned, the People's Party will likely exit the governing coalition, so the governing party will be unable to win the majority of the parliament, which may lead to government collapse. As market concerns spread, Portugal's government bond yields surged to above 8%, while the euro fell to a low of 1.29. But positive euro zone economic data boosted market confidence. Euro zone June Markit PMI was finally 48.7, a record high in 15 months, and Spanish and French service PMIs were both better than expectations, while Germany's service and comprehensive PMI was below expectations, but still above 50. Chinese Premier Li Keqiang held a State Council executive meeting July 3 concerning rectification and reform work and to activate reserve capital. The China (Shanghai) Free Trade Pilot Zone Plan and the Regulations of Foreigners Entry and Exit China (draft) were passed at the meeting. Ttechnically market is under short covering as market has witnessed drop in open interest by -2.62% to settled at 4864 while prices up 0.35 rupee, now Zinc is getting support at 111.50 and below same could see a test of 110.80 level, And resistance is now likely to be seen at 113.10, a move above could see prices testing 114.10.

Trading Ideas:

Zinc trading range for the day is 110.9-114.2.

Zinc gains as support seen after Employment in US private sector continued to grow in June and initial jobless claims dropped

Euro zone June Markit PMI was finally 48.7 and Spanish and French service PMIs were both better than expectations

Concerns over European debt crisis increased again due to Portugal political chaos.