Zinc on MCX settled up 0.94% at 139.4 on expectations that mine closures will cause shortages. Zinc is by far the best performing LME metal this year, rallying 30 percent on forecasts that tightening supplies will cause shortages. Goldman Sachs Group has dubbed it the “bullish exception” among base metals amid a widening shortage.

An unexpected drop in weekly U.S. jobless claims soothed worries about Chinese economic growth and increased the possibility of a U.S. rate rise in June or July. 

Technically market is under fresh buying as market has witnessed gain in open interest by 13.43% to settled at 10479 while prices up 1.3 rupee, now Zinc is getting support at 137.9 and below same could see a test of 136.2 level, And resistance is now likely to be seen at 140.4, a move above could see prices testing 141.2.

                       Trading Ideas

1. Zinc trading range for the day is 136.2-141.2.     

2. Zinc prices rallied on expectations that mine closures will cause shortages.      

3. Chinese trade data on suggested the country imported commodities in relatively large quantities last month.