Zinc yesterday traded with the positive node and settled 0.24% up at 103.25 ahead of the release of Q2 economic growth figures from China and as sentiment soured after the US Federal Reserve dampened speculation of further stimulus measures in the short-term. The Fed minutes said economic recovery might need to weaken for a consensus to build on more stimulus measures. The comments dashed hopes that such measures will be implemented soon. Market see China's economic growth probably slowed further in the second quarter to 7.6 percent, its worst performance since the 2008/09 financial crisis, as investment, factory output and retail sales weakened across the board. LME zinc prices overnight opened at $1,846.5/mt and dipped to $1,837.5/mt and then moved between $1,830-1,850/mt. As Australian job data was worse than expected, and due to concerns over China's GDP, LME zinc prices fell further and dipped to $1,830.8/mt, and finally closed at $1,846.5/mt, down $2.8/mt, or 0.15%. In yesterday's trading session zinc has touched the low of 102.65 after opening at 103.05, and finally settled at 103.25. For today's session market is looking to take support at 102.8, a break below could see a test of 102.3 and where as resistance is now likely to be seen at 103.7, a move above could see prices testing 104.1.

Trading Ideas:

Zinc trading range for the day is 102.25-104.05.

Zinc ended with gains tracking recovery in LME prices after data showed number of US jobless claims dropped

Fed minutes said economic recovery might need to weaken for a consensus to build on more stimulus measures

Zinc daily stocks at Shanghai exchange came down by 174 tonnes