Zinc on MCX settled down -0.46% at 195.50 tracking weakness from LME zinc closed down 0.3 percent at $2,916 a tonne as stronger dollar gains across the metals sector led rises in markets. The base metals remain well placed to push after with their advances and the stronger Chinese trade data, combined with bullishness over Trump’s likely tax reforms, may well add fuel to the rallies that have in recent weeks continued to meet resistance at the higher numbers. The stronger dollar may act as a headwind, but given the renewed bullish undertone prices may be able to forge ahead regardless. Zinc prices hit their highest in 2-1/2 months on last Friday as investors piled into risky assets after U. S. President Trump calmed international tensions by affirming the "one-China" policy and promised big tax cuts. Zinc, mainly used in galvanised steel, was also boosted after Chinese iron ore futures jumped nearly 8 percent on Friday to their highest in three years and Chinese steel rebar futures also gained. Base metals were also boosted after China reported better-than-expected trade data for January as demand picked up both at home and abroad, an encouraging start to 2017 for the world's largest trading nation. Now Investors will also keep an eye out on a number of U. S. economic reports in the week ahead, including the January producer price index on Tuesday, the January consumer price index and retail sales on Wednesday and housing-related data on Thursday. Technically market is under long liquidation as market has witnessed drop in open interest by -13.88% to settled at 7444 while prices down -0.9 rupees, now Zinc is getting support at 194.2 and below same could see a test of 192.8 level, And resistance is now likely to be seen at 197.8, a move above could see prices testing 200.

Trading Ideas:

# Zinc trading range for the day is 192.8-200.

# Zinc dropped tracking weakness from LME zinc closed down 0.3 percent as stronger dollar weighed.

# The surge was mainly because Korea Zinc expected its sales to fall by 6.7% in 2017 in its financial report, which raised market expectation.

# Zhuzhou Smelter Group will remove its old factory in 2017, and output will not be affected over the year, as the plan is only at the initial stage.