Zinc on MCX settled down -1.7% at 179.40 tracking weakness from LME Zinc which slid 1.7 percent to end at $2,693, the lowest since Jan. 17, as investors awaited more evidence that closures and suspensions of major mines last year were tightening the refined market. In zinc the story has not changed much since last year. The concentrate market is likely at peak levels of tightness; however, so far this year, refined tightness has yet to fully arrive. A flurry of data in coming weeks is expected to show China posted solid economic growth in February, even as the government trimmed its growth target for the year to focus on containing the risks from a rapid build-up in debt. The pick-up in weakness seems to have been driven by a combination dominant overhead supply ahead of $3,000 per tonne and more recently by dented sentiment after China reduced its growth target to 6.5%.Cancelled warrants have risen, which may signal a pick-up in stock outflow. It also means there are now fewer than 200,000 tonnes of available metal in LME-listed warehouses. Meanwhile, investors await non-farm payrolls for February on Friday, viewed as a critical barometer of the U.S. economy and represents the final key economic data point ahead of the Federal Reserve’s policy meeting on March 14-15. Technically market is under long liquidation as market has witnessed drop in open interest by -3.33% to settled at 5087 while prices down -3.1 rupees, now Zinc is getting support at 177.3 and below same could see a test of 175 level, And resistance is now likely to be seen at 183.3, a move above could see prices testing 187.

Trading Ideas:

Zinc trading range for the day is 175-187.

Zinc dropped as investors awaited more evidence that closures and suspensions of major mines last year were tightening the refined market.

New orders for U.S.-made goods increased for a second straight month in January, suggesting the recovery of the manufacturing sector was gaining momentum.

Zinc daily stocks at Shanghai exchange came up by 350 tonnes.