Zinc on MCX settled up 1.39% at 189.65 risen as trader shorts cover positions ahead of the Chinese New Year, which begins at the end of this week. Also prices got support as metal was in deficit over the first 11 months of last year with total reported inventories declining over the same time frame. Meanwhile the ILZSG revealed a significant increase in Chinese output while the world’s zinc mine production fell overall by 1.2%. LME Zinc recently traded at $2,803 per tonne, up $36. Stocks and cancelled warrants were both 1,850 tonnes lower at 412,500 tonnes and 136,425 tonnes, respectively. With Donald Trump taking office, there are still no sign that the market is turning risk-off. Instead, the global economy is showing some resilient as risky assets are generally steady and consolidating well from its recent gains. In the week ahead, Trump's policy plans in his first days in office are likely to dominate headlines along with fourth quarter growth from the U. S. on Friday and from the U. K. a day earlier. Tuesday’s data on euro area private sector activity will also be closely watched. Technically market is under short covering as market has witnessed drop in open interest by -1.08% to settled at 5507 while prices up 2.6 rupee, now Zinc is getting support at 188.8 and below same could see a test of 187.8 level, And resistance is now likely to be seen at 190.7, a move above could see prices testing 191.6.

Trading Ideas:

# Zinc trading range for the day is 187.8-191.6.

# Zinc prices gained tracking LME prices closed up 0.8 percent at $2,790 a tonne buoyed by dollar weakness.

# The ILZSG revealed a significant increase in Chinese output while the world’s zinc mine production fell overall by 1.2%.

# Zinc daily stocks at Shanghai exchange came up by 448 tonnes.