Zinc settled -0.1% down at 100.8 extended declines after industrial metals tumbled by the most in a year, all major commodity markets fell sharply on Friday, with oil tumbling to a nine-month low and gold hitting a 20-month low as investors dumped the commodities on worries about a weak global economic outlook and a plan for Cyprus to sell gold reserves. Euro zone finance minister meeting made great strides including successfully prolonging the deadline for Ireland and Portugal to pay their debt, an agreement on the banking sector union issue and a confirmation that Cyprus will receive bailout funds, pushing up the euro to 1.31. But the market barely gave any positive response to the news. On top of Cyprus selling gold assets, international spot gold prices plunged by nearly 5% last Friday, dipping to as low as USD 1,481/oz, with a weekly decline of 6%, the largest last seen in December 2,011. According to latest data from the People's Bank, China's foreign exchange reserves increased by nearly USD 130 billion in Q1, a record quarterly high since Q2 2011, and forex receipt in financial institutions in February increased by RMB 295.43 billion. The State Council executive meeting decided to implement pilot projects of levying value added tax instead of business tax in the transportation industry and modern service industry across China, and will include railway transportation and post and telecommunication industries in the pilot projects soon. For today's session market is looking to take support at 100.6, a break below could see a test of 100.3 and where as resistance is now likely to be seen at 101, a move above could see prices testing 101.1.

Trading Ideas:

Zinc trading range for the day is 100.33-101.13.

Zinc dropped as concerns about slowing economic growth raised fears over the outlook for base metals demand.

US March retail sales dropped most significantly in nine months, while University of Michigan CCI for April hit a nine-month low

Zinc weekly stocks at Shanghai exchange came down by 10273 tonnes