Zinc yesterday traded with the negative node and settled -1.17% down at 101.65 after Spain and Italy both saw borrowing costs spike higher at debt auctions earlier in the day. Spain also sold EUR1.48 billion of six-month debt at an average yield of 3.23%, up from 1.73% in May. On Monday, rating’s agency Moody’s downgraded 28 Spanish banks, citing concerns over Madrid’s ability to support its banking sector, which the agency said was vulnerable to further losses from Spain's real-estate bust. Meanwhile, investor sentiment remained fragile amid doubts over whether an upcoming European Union summit will result in fresh measures to tackle the region’s debt crisis. German Chancellor crushed any hopes that euro zone countries will eventually issue common Eurobonds to help indebted nations, calling such an idea “economically wrong” and “counterproductive”. Meanwhile, ongoing concerns over the health of the global economy further weighed. HSBC Holdings joined Citigroup in cutting growth forecasts for China. HSBC cut its forecast for China’s 2012 growth to 8.4% from 8.6%. That came a day after Citigroup lowered its estimate for China’s growth this year to 7.8% from 8.1%. For today's session market is looking to take support at 101.2, a break below could see a test of 100.7 and whereas resistance is now likely to be seen at 102.8, a move above could see prices testing 103.9.

ZINC

Zinc trading range for the day is 100.4-104.

Zinc settled -1.17% down after Spain and Italy both saw borrowing costs spike

Base metals ongoing concerns over the health of the global economy further weighed.

HSBC Holdings joined Citigroup in cutting growth forecasts for China to 8.4% from 8.6%.

Warehouse stock for Zinc at LME was at 993900mt that is up by 1050mt.

SELL ZINC JUNE @ 102.10 SL 102.80 TGT 101.50-100.80.MCX